Piper Jaffray Rates CenturyLink Overweight With a Price Target of $39

CenturyLink, Inc. (NYSE: CTL) released its 3Q10 results before the market open, Piper Jaffray reports. The company reported better financials than expected, although operating metrics were slightly below forecast.

“The company also raised and narrowed its outlook for full-year 2010 revenues and EPS toward the high end of previous guidance and provided an initial look at 2011 expectations,” Piper Jaffray writes. “We rate CenturyLink Overweight with a price target of $39.”

Piper Jaffray said that its target price continues to be based on its five-year discounted cash flow analysis, using an 8.1% cost of capital and a -0.5% terminal growth rate.

CenturyLink currently trades at $42.00.