Sprint Corp. (S): Sales/Leaseback Drives PT Increase But DISH May Be The Real Winner - Macquarie

October 13, 2016 6:59 AM EDT
Get Alerts S Hot Sheet
Price: $9.18 +2.80%

Rating Summary:
    8 Buy, 26 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
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Macquarie analyst, Amy Yong, reiterated her Outperform rating on shares of Sprint (NYSE: S) after the creation of spectrum-leaseback transactions which boosted Sprint’s liquidity position.

The leaseback, increased Sprint's market value by up to US$7bn and placed a value to its spectrum portfolio for an implied value of US$117bn. This transaction supports its current ~US$60bn EV and drives the current target to US$8 from US$7 based on 6x CY17 EBITDA ex-leasing.

Sprint aside, the big winner is Dish (NASDAQ: DISH) where the spectrum value at US$1.85/MHzPoP implies upside to the US$66 TP and could bring the valuation closer to US$94.

The price target increases to $8 from $7.

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 $6.78 yesterday.

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