Improvement In Economy Will Support PAET’s Investors

Analysts at Collins Stewart reiterate their "buy" rating on PAETEC Holding Corp PAET. The target price for PAET is set to $6. The improvement in economy, along with the possible CLEC acquisition by a cable operator, “will likely boost valuation multiples across the sector.” Collins Stewart says, “We also now believe that generally improving economic conditions will be at least partially offset by the accelerating migration of voice traffic from traditional TDM based networks to IP based networks that upon direct comparison, generally results in significantly less revenue for what is effectively the same level of service.” Analysts continue to believe that PAET “stock will continue to work for investors looking for exposure to stocks levered to an improving economy with the possibility of consolidation with cable operators.” More Analyst Ratings here