Stifel Nicolaus predicted Ia. Telecom will get some of the relief...
Stifel Nicolaus predicted Ia. Telecom will get some of the relief it’s seeking from the FCC through its forbearance petition asking for USF support, in a research note. The FCC must act by Aug. 6. “While the issues surrounding…
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the petition are complicated, and approval is far from certain, we believe it more likely than not, that the FCC will grant Iowa Telecom at least some partial relief on the forbearance petition, and allow the company to recoup some additional regulatory support,” the analyst firm said, predicting it could receive the full amount it’s seeking, $22.2 million. An Ia. Telecom win would add 69 cents per fully diluted share to its bottom line, but will likely drive up the value of the stock, Stifel Nicholas said. “We believe most investors continue to value Iowa Telecom’s equity largely on the basis of the company’s dividend yield, and we note the political challenges that the company would likely face by dramatically increasing its dividend payout shortly after a regulatory win premised on the company being able to increase investment in telecommunications plant in rural areas,” the firm said.