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Investing.com - Benchmark has reiterated its Hold rating on Frontier Communications (OTC:FTRCQ) (NASDAQ:FYBR) stock, currently trading at $36.89 and near its 52-week high of $39.21, as the company’s acquisition by Verizon (NYSE:VZ) progresses toward an anticipated first-quarter 2026 closing.
The research firm has revised its fiber penetration and pricing analyses through 2030 and remains constructive on Verizon acquiring Frontier at what it considers a reasonable or favorable price. This assessment comes as many U.S. telecom stocks, particularly cable companies, have underperformed the S&P 500 since the September 5, 2024 acquisition announcement.
Benchmark maintained its Hold rating based on the definitive acquisition agreement with Verizon at a $38.50 cash deal price. The firm now estimates Frontier’s 2026 value per share at $44 after incorporating ongoing positive fiber results.
The analysis update aims to position Frontier within Benchmark’s overall U.S. broadband model, evaluate its eventual integration into Verizon, and assess its competitive standing against cable and fixed wireless alternatives.
Benchmark expects Verizon to carefully evaluate and incorporate Frontier’s best practices immediately following the planned first-quarter 2026 closing, particularly given Frontier’s strong relative performance in fiber growth. InvestingPro analysis reveals additional crucial metrics and insights about Frontier’s financial health, available in the comprehensive Pro Research Report.
In other recent news, Frontier Communications Parent, Inc. reported its second-quarter 2025 results, highlighting significant developments for investors. The company achieved a record increase by adding 126,000 fiber customers during the quarter. However, Frontier reported a quarterly loss of $0.49 per share, which was wider than the analyst estimates of a $0.20 per share loss. On a positive note, the company’s revenue reached $1.54 billion, surpassing the consensus estimate of $1.51 billion and marking a 4.0% year-over-year increase. These recent developments indicate a mixed performance for the quarter, with strong customer growth but a larger-than-expected financial loss.
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