CenturyLink Lowering Estimates

According to Oppenheimer, CenturyLink is lowering the company's pro-forma CTL-Q and legacy CTL estimates CTL. Oppenheimer reported that CenturyLink have reduced their synergy estimates for 2011. “In our view, management has assumed a traditionally conservative stance in providing initial guidance, and we expect more upside from cost containment initiatives in the legacy CTL operations. Based on our revised 2012 EPS estimate, the stock trades at P/E of 13x vs. ~14x for peers. Regardless, we believe the pending USF/ICC reform and ongoing rotation to higher beta will likely keep valuation multiples across the RLEC block at depressed levels for a while.” CenturyLink closed yesterday at $40.70.