UPDATE: J.P. Morgan Color On FTR Sell Off

J.P. Morgan, which lowered its PT on shares of Frontier FTR, is providing some color on the stock.

“Frontier stock has sold off 14% since it reported 4Q10 earnings on Wednesday 2/23 as ‘unanticipated expenses' ($16m in 4Q10) caused an EBITDA miss and raised investor concern on the company's longer-term free cash flow outlook,” J.P. Morgan writes. “The company has been delivering on its guidance, and some key metrics (access lines, churn) continued to move in the right direction.

“We maintain our positive view on the stock, as we believe customer metrics are getting better, execution toward market conversions is progressing as planned, and the dividend remains safe as synergies are realized.”

Frontier closed Monday at $7.94.