Sprint (S) PT Raised to $8 at FBR Capital; Turnaround on Track
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
FBR Capital analyst David Dixon reiterated an Outperform rating and raised its price target on Sprint (NYSE: S) to $8.00 (from $7.00), saying the business turnaround is on track.
Dixon commented, "Our non-consensus thesis is playing out, as Sprint's turnaround story is on track with preliminary F2Q16 financial results coming in ahead of Street expectations. Rather than chasing after poorer-quality subscribers in a race to the bottom, Sprint is executing an aggressive multifaceted network strategy pivot to retain and attract higher-value subscribers and drive positive free cash flow. Combined with the recently announced (1) spectrum-backed lease notes of up to $3.5B at lower borrowing rates to fund the repayment of upcoming debt maturities, (2) quarterly MLS sales, and (3) lower YOY capex expectations that can be sustained, Sprint's liquidity and financial footing have greatly improved, in our view. There are more positive catalysts ahead; approval of high-power devices on 2.5 GHz spectrum is anticipated by year-end, with devices expected in 1Q17. This should increase 2.5 GHz spectrum utility significantly, increasing the network coverage area by 40% for these devices, driving a major improvement in user experience. Our recent industry checks also indicate that Sprint is now shipping commoditized indoor tri-band voice and data CPE at scale to improve indoor coverage at low incremental cost. We reiterate our Outperform rating and raise our price target to $8 from $7."
Shares of Sprint closed at $6.86 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Drexel Hamilton Raises Price Target on Workday (WDAY) Following 3Q Beat
- BTIG Cuts PT on Workday (WDAY) to $88 Following Q3 Results; Affirms at 'Buy'
- Jefferies Raises Price Target on Ulta Salon (ULTA) to $270; Reiterates Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Sign 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!