UPDATE: Citi Lowers PT on CenturyLink to $42

Citi is out with its report today on CenturyLink CTL, lowering its PT to $42 from $48. in its report, Citi writes, "We remain a buyer of CenturyLink based on its attractive freecash flow yield (~13% on our forecast for reported 2011 FCF and ~16% on norm. FCF), potential benefits from slowing the rate of revenue erosion beginning in 4Q/11, and room to outperform OIBDA by cutting costs at a faster pace. We have reduced our target price from $48 to $42 to reflect the dilution to our cash flow outlook over time, while we believe the current dividend and FCF yields remain attractive vs. its peers." At the time of posting, shares of CTL were trading pre-market at $33.49, up 0.33% from Wednesday's close.