On Monday, Citi maintained its Neutral rating on shares of Consolidated Communications Holdings Inc. (NASDAQ:CNSL) with a steady price target of $4.70. The firm's analysis followed the company's second-quarter results, keeping the target price consistent with previous evaluations.
Citi's assessment reflects confidence in the impending acquisition of CNSL, estimating a 98% chance that the transaction will finalize under the proposed terms. The firm also calculated a 2% likelihood for the stock to reach a fundamental value of $3.68 per share, which represents a potential downside scenario.
The anticipated timeframe for the completion of CNSL's acquisition is projected to be either late in the fourth quarter of 2024 or at the beginning of the first quarter of 2025. This projection aligns with the company's recent communications regarding the expected closing period.
The price target of $4.70 remains unchanged even after the recent quarterly financial results. This suggests that the performance metrics reported by Consolidated Communications were within the expectations set by Citi's previous analyses.
The firm's neutral stance on CNSL indicates a wait-and-see approach, with the acquisition outcome being a significant factor in the stock's future performance. Investors are likely to monitor the progress of the acquisition closely as it moves towards the anticipated closing dates.
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