Knology Reiterated As A 'Buy' Stock

Knology, Inc. KNOL reported revenues of $113M and EBITDA of $39M in its 2Q, and announced its acquiring of Sunflower Broadband for $165M, a deal expected to close in 4Q10, according to Jefferies & Company, whose estimates fell in line with the results. The acquisition will be made possible by cash on hand ($87M as of 2Q10) and tapping into capital markets, and Jefferies estimates that Knology has the capacity to raise its debts to fully finance the transaction (upwards of $200M+). Jefferies reiterates its "buy" rating and price target of $15. Knology, Inc. closed yesterday at $12.77.