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Nomura Securities Maintains a 'Neutral' on Sprint (S); Q4 Review

February 9, 2012 11:49 AM EST
S Hot Sheet
Rating Summary:
    6 Buy, 14 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Nomura Securities maintains a 'Neutral' on Sprint (NYSE: S) price target of $2.50.

Analyst, Mike McCormack, said, "In our view, an investment in Sprint discounts expectations against eventual positive free cash flow generation. With good enough 4Q results in hand, we focus on the progression towards Sprint’s anticipated positive inflection in 2H12 EBITDA. We are highly skeptical of Sprint’s ability to either foresee the competitive influences present in the next iPhone refresh cycle, or deliver EBITDA improvement throughout, and we see risk to estimates as 2012 progresses. With ~$3bn yet to be raised to complete the capital structure, we understand the importance of managing towards improving trends; however we cannot help but be skeptical given industry dynamics. Our 2012 EBITDA estimate of $3.8bn is essentially unchanged, and remains at the mid-point of the targeted $3.7bn-$3.9bn EBITDA range."

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 $2.41 yesterday, with a 52 week range of $2.10-$6.45.


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