Eric Savitz (Barron's) submits: Concerned about the impact of the softening economy, Oppenheimer analyst Timothy Horan this morning turned cautious on the “emerging telecom sector.” He cut his ratings on both Level 3 (LVLT) and Cogent Communications (CCOI) to Underperform from Perform, while chopping TW Telecom (TWTC) to Perform from Outperform. Horan notes that in the second quarter, the company saw slowing demand and decreases in pricing power from both Cogent and Paetec Holding (PAET). He said Level 3 showed “anemic revenue growth” in the quarter, “but great expense controls.” Horan says that while the sector has already been under pressure, the companies are heading for a “difficult six to nine month period.” Complete Story » ...
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Eric Savitz (Barron's) submits: Concerned about the impact of the softening economy, Oppenheimer analyst Timothy Horan this morning turned cautious on the “emerging telecom sector.” He cut his ratings on both Level 3 (LVLT) and Cogent Communications (CCOI) to Underperform from Perform, while chopping TW Telecom (TWTC) to Perform from Outperform. Horan notes that in the second quarter, the company saw slowing demand and decreases in pricing power from both Cogent and Paetec Holding (PAET). He said Level 3 showed “anemic revenue growth” in the quarter, “but great expense controls.” Horan says that while the sector has already been under pressure, the companies are heading for a “difficult six to nine month period.” Complete Story » ...