Citi Maintains Buy on PAETEC Corp. (PAET)

Citi is out with its report today on PAETEC Corp. PAET, maintaining Buy. In a note to clients, Citi writes, "We remain a buyer of Paetec, following the recent weakness in the share price, as we believe its FV/OIBDA multiple (at the lower-end of its peer group range) has room to expand based on: 1) improving backdrop for spending on Telco services by business & wholesale customers; 2) retaining focus on higher-value midsize customers that should improve core revenue growth; 3) benefiting from recent acquisitions that can boost its product portfolio, including on-network fiber facilities; 4) continuing to generate positive FCF; & 5) capturing acquisition-related synergies that can lower costs & its financial leverage ratio." Citi maintains a $5.50 PT on PAET. Shares of PAET closed Wednesday at $3.35.