Frontier downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Simon Flannery downgraded Frontier Communications to Underweight from Equal Weight with a price target of $19, down from $23, representing 20% downside from current levels The analyst cites Frontier’s "premium" valuation to telecom peers, rising risks to fiber growth targets due to increasing competition, and its recent plans for a slower fiber expansion potentially delaying positive free cash flow generation for the downgrade. Frontier has significantly outperformed the wireline telco sector in recent weeks, reflecting its "generally constructive" 2023 guidance and a more favorable business mix, the analyst tells investors in a research note. The firm, however, is concerned about the potential for multiple compression in the coming quarters as investors focus on downside risks.