Macquarie Upgrades Sprint (S) to Outperform

October 16, 2013 7:42 AM EDT
Get Alerts S Hot Sheet
Price: $8.93 -0.45%

Rating Summary:
    8 Buy, 26 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Macquarie upgraded Sprint (NYSE: S) from Neutral to Outperform with a price target of $7.50 (from $7.00).

"In our opinion, recent weakness in Sprint shares due to concerns over a weak Q3 and Q4 and potential 2014 EBITDA guidedown have created an entry point in what we believe is the most compelling 3-5 year story in large cap US telecom," analyst Kevin Smithen said. "Given the limited liquidity in S shares post tender, we are prepared to be a few months early in order to not miss what could be a rapid 20-30% next year. Larger investors should take advantage of any increased volatility and liquidity around the Q3 print to aggressively build positions ahead of what we think will be improving newsflow and postpaid sub trends over the next few qtrs. At the end of the day, we believe that spectrum quantity wins and in Son-San’s vision and track record of execution. Now that the market has a more realistic view of the timing and costs of Network Vision as well as the sub and EBITDA ramp for S, we think the stock has been significantly de-risked since the closing of the SoftBank deal."

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 $6.03 yesterday.

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