J.P. Morgan Reiterates Overweight on CenturyLink

J.P. Morgan is out with its report today on CenturyLink CTL, reiterating Overweight. In its report, J.P. Morgan writes, "We adjust our CenturyLink model for the company's new reporting segments as well as for the Savvis acquisition. We look for 2011 pro forma revenue of $18.6bn and EBITDA of $8.0bn, in line with management's guidance. CenturyLink remains our top pick among wireline pure plays, with the strongest balance sheet and an 8.3% dividend yield, well supported by a peer-group-low ~50% payout ratio. Despite the recent recovery, the stock is still down 5% since the company reported earnings on August 3rd. We reiterate our Overweight rating and establish our end-2012 target price of $45 (same as end-2011's)." Shares of CTL closed Monday at $34.98, up 1.07% from Friday's close.