Cincinnati Bell (CBB) is down today after reporting earnings, so I wanted to post an update for you, as I see today’s action as a shorter-term setback in what is still an attractive and deeply discounted stock.

First, most of CBB’s numbers were about what Wall Street had been expecting – maybe even a little better, actually. The company reported a loss of $0.03 a share on an adjusted basis, one penny higher than expectations, while revenue came in 9% higher than consensus estimates. However, confusion regarding the company’s headline EPS got traders voting with their feet.

Among other factors, I believe the complex financial adjustments surrounding CBB’s exit from the wireless telephone business have made comparisons look worse than they actually are. The company is not in a free fall. Margins on the continuing operations are improving, if anything, and the top-line growth is remarkable in this traditionally slow-moving industry.

The stock has dipped from $3.70 to $3.40, but I don’t expect it to stay there. Further downside risk looks minimal at this point, as we bought at a low price to begin with, and whatever bad news the market can imagine already looks priced in. Looking out over the next few months, CBB still looks like a great deal in a slow but steady grower, and I’m maintaining my $4 target.

CBB is now back below our $3.55 limit, where it remains a buy. I am also making it a Top Buy — and removing Lionbridge Technologies (LIOX) — in the Deep Value category given the depressed levels and potential it still holds.