NEW YORK, May 23 (Reuters) - CenturyTel Inc's shares may be poised to rise by about 20 percent in 2011 on the strength of its recent acquisitions, Barron's reported.
The business weekly said in its May 24 issue that CenturyTel, which does business as CenturyLink, has become a 'textbook consolidator' and has been buying rivals, 'cutting their costs and pumping out strong profits from them.'
The paper said CenturyTel's rising profits, rich cash flow, strong management and 8.8 percent dividend yield give it appeal.
Over the past 18 years, the company has made 12 major acquisitions, including its purchase last year of Embarq. It is in the process of acquiring Qwest Communications.
CenturyTel's shares closed at $33.25 on Friday on the New York Stock Exchange.
(Reporting by Franklin Paul; Editing by Leslie Adler) Keywords: CENTURYTEL/ (Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The business weekly said in its May 24 issue that CenturyTel, which does business as CenturyLink, has become a 'textbook consolidator' and has been buying rivals, 'cutting their costs and pumping out strong profits from them.'
The paper said CenturyTel's rising profits, rich cash flow, strong management and 8.8 percent dividend yield give it appeal.
Over the past 18 years, the company has made 12 major acquisitions, including its purchase last year of Embarq. It is in the process of acquiring Qwest Communications.
CenturyTel's shares closed at $33.25 on Friday on the New York Stock Exchange.
(Reporting by Franklin Paul; Editing by Leslie Adler) Keywords: CENTURYTEL/ (Email: Franklin.Paul@thomsonreuters.com; +1 646 223 6195; Reuters Messaging: Franklin.Paul.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.