Collins Stewart Maintains a 'Neutral' on Sprint (S); Clearwire Drama Continues
S Hot Sheet
Rating Summary:6 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 8 | New: 25
Collins Stewart maintains a 'Neutral' on Sprint (NYSE: S) price target of $3.00.
Collins analyst says, "With the December 1st deadline, Sprint yesterday again continued to reverse course following the October 7th analyst day by announcing that it would provide funding to Clearwire (Nasdaq: CLWR)(Not rated), contingent upon an outside equity raise. In addition, Cleariwre announced that it would make its $237mm interest payment, effectively removing the risk of what could have been an imminent bankruptcy filing. Sprint also announced it would continue to use Cleariwre’s network and market new devices that will run on its network through 2015...It remains our opinion that before Sprint fully resolves its longstanding issues with Clearwire, investors will largely remain on the sidelines."
"AT&T (NYSE: T) – Deutsche Telekom (NYSE: DT) further complicates matters: Should the two companies fail to close some form of its proposed merger now that they have withdrawn their application for consideration by the FCC, we would expect T-Mobile USA to return to the market as a more
aggressive and promotional competitor. Clearly this would not be a positive development for Sprint."
For an analyst ratings summary and ratings history on Sprint click here. For more ratings news on Sprint click here.
Shares of Sprint closed at $2.70 yesterday, with a 52 week range of $2.10-$6.45.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
Collins analyst says, "With the December 1st deadline, Sprint yesterday again continued to reverse course following the October 7th analyst day by announcing that it would provide funding to Clearwire (Nasdaq: CLWR)(Not rated), contingent upon an outside equity raise. In addition, Cleariwre announced that it would make its $237mm interest payment, effectively removing the risk of what could have been an imminent bankruptcy filing. Sprint also announced it would continue to use Cleariwre’s network and market new devices that will run on its network through 2015...It remains our opinion that before Sprint fully resolves its longstanding issues with Clearwire, investors will largely remain on the sidelines."
"AT&T (NYSE: T) – Deutsche Telekom (NYSE: DT) further complicates matters: Should the two companies fail to close some form of its proposed merger now that they have withdrawn their application for consideration by the FCC, we would expect T-Mobile USA to return to the market as a more
aggressive and promotional competitor. Clearly this would not be a positive development for Sprint."
For an analyst ratings summary and ratings history on Sprint click here. For more ratings news on Sprint click here.
Shares of Sprint closed at $2.70 yesterday, with a 52 week range of $2.10-$6.45.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- Compass Point Maintains a 'Neutral' on UDR, Inc. (UDR); Raising PT, But Lowering Estimates
- Nomura Securities Maintains a 'Neutral' on Yahoo! (YHOO); Monetizing Alibaba
- Barclays Maintains an 'Equalweight' on Apollo Commercial Real Estate Finance (ARI); Effectively Using Capital, But Shares Trading In-line Vs. Peers
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Collins Stewart, BankruptcySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
