Brighter Day For Level 3?

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US Bancorp Piper Jaffray analyst Cary Robinson initiated Level 3 Communications Inc. with a "strong-buy" rating and a $60 per share price target, citing growing confidence in the communications sector. Level 3, which closed down $1.50 at $38.31 last Tuesday, provides broadband communications services based on Internet-protocol technology.

"In our view, shares of Level 3 are extremely oversold due to fundamental concerns regarding the profitability of the communication-services sector," Robinson wrote. "We believe this concern is temporary and will dissipate as the equity market discards near-term macroeconomic issues.and refocuses on growth-industry segments with strong underlying fundamentals."

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