Buyback Boosts GCI11/28/2004 7:00 PM Eastern
Stifel, Nicolaus & Co. analyst Ted Henderson raised his price target on General Communications Inc. to $12.50 from $12 after the Alaskan cabler announced a share repurchase plan that is likely to boost its stock.
Earlier this month, GCI announced a plan to repurchase about 3.8 million shares of its stock from its largest customer, MCI, at a price of $8.33 per share. GCI closed at $10.30 each Nov. 22, up 39 cents.
“This transaction shows that GCI is following through on its commitment to return capital to shareholders via share repurchases,” Henderson wrote.
Henderson expects GCI will establish a dividend in the next 18 months, he added.