AUSWR
The Association of U S West Retirees
 

 

 

Investment firm downgrades Qwest
Rocky Moutain News
Wednesday, February 22, 2006

A Greenwood Village investment firm on Tuesday downgraded Qwest Communications' stock rating to "sell" from "market perform."

Donna Jaegers, a telecommunications analyst at Janco Partners, wrote that Qwest's market penetration in DSL Internet service and long-distance phone service is below the average of its peers, and she is skeptical about how much more Qwest can take as cable competitor Comcast gets more aggressive.

"In order to hold share, we think (Qwest) will have to ramp up its capital-spending programs by $200 million to $300 million," Jaegers wrote.  Jaegers also noted Qwest still has almost $15 billion in debt.

She set Qwest's price target at $4.60 a share. Qwest closed Tuesday at $6.27, down 1 cent

http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4485683,00.html