I own this already and get a nice yield...good upside if it gets there
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- October 29, 2010, 11:17 AM ET
Earthlink: Davidson Says Buy
By Eric Savitz
D. A. Davidson analyst Donna Jaegers this morning launched coverage of Earthlink (ELNK) with a Buy rating and $14 price target.
Jaegers notes that after the company’s pending acquisition of ITC Deltacom (ITCD.OB), 60% of revenue will come from the business sector, a switch from its prior reliance on its shrinking consumer ISP business.
“With a 7.1% dividend yield, investors get paid to wait to see if ELNK’s management can grow its CLEC business,” she writes in a research note. “As it does, valuation of the stock should improve to our $14 price target, offering almost a double from current levels.”
ELNK is up 5 cents, at $9.01.
