UPDATE: Citi Downgrades Windstream; Lowers PT

According to a research report published this morning, Citi has downgraded Windstream WIN from Buy to Neutral, and lowered PT from $15 to $11. Citi commented in the report, "Windstream reported 1Q results that unexpectedly added some headwinds to the pace of improvement in both revenue and FCF over the next 24 months, despite the core Business & Broadband (B&B) strategy showing positive traction & accelerating revenue growth. We reduced our rating on Windstream to Neutral & reduced our target price to $11. The combination of disclosures as part of the 1Q results has pushed out our expectation by at least a year for WIN to grow revenue and FCF. Revenue growth in its strategic, business and broadband (B&B) category showed nice acceleration for the fourth consecutive quarter, which was a key reason we had been enthusiastic for revenue performance to improve this year. However, the overhang on results and valuation from lower legacy revenue and FCF simply turned out to be larger than we anticipated." Windstream closed yesterday at $10.09.