Sprint (S) Mulls Use-of-Cash Following Softbank Deal

October 26, 2012 11:28 AM EDT Send to a Friend
Get Alerts S Hot Sheet
Price: $6.06 -2.88%

Rating Summary:
    10 Buy, 20 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
Trade S Now!
Join SI Premium – FREE
Now flush with cash following the Softbank deal, Sprint (NYSE: S) is mulling options for its $9.4 billion pro forma cash balance, though they didn't exactly lay out a clear plan, and many questions remain unanswered.

In the view of Nomura analyst Mike McCormack, Sprint's healthy cash balance should be more than enough to cover cash burn in the coming quarters.

"Management said it wouldn't be looking to cut prices in the near term, or adopt 'shared data' plans, but spoke to internal investments they weren't able to make due to their previously limited financial flexibility," said McCormack.

He expects Sprint to focus on Clearwire (Nasdaq: CLWR) funding needs, spectrum acquisitions when available, and increasing gross additions.

Nomura Securities has a Buy rating on Sprint (NYSE: S) with a price target of $7.00.

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 $5.52 yesterday.


Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments

Related Entities

Nomura

Add Your Comment