UPDATE: Nomura Securities Upgrades Sprint (S) to Buy; Network Vision Cost-Saving Prospects Gaining Visibility
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Price: $7.37 -0.27%
Rating Summary:
10 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
10 Buy, 17 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade S Now!
(Updated - September 10, 2012 9:54 AM EDT)
Nomura Securities upgraded Sprint (NYSE: S) from Neutral to Buy. PT raised to $7.
Analyst, Mike McCormack, said, " We believe Network Vision cost-saving prospects are gaining increased credibility, competitive risks are overstated, and that shares offer substantial upside potential with any margin improvement. Sprint’s underlying margins have been steady at around 16% for the past few years, but we view the company as having the ability to have EBITDA service margins in the low 20% range after the project is completed. We see the US market as a bifurcated environment, with AT&T and Verizon operating at superior scale versus all other participants. Sprint shares trade at 5.6x our 2012E EBITDA excluding Network Vision dilution, a meaningful discount to AT&T (NYSE: T) and Verizon (NYSE: VZ) at ~6.3x, which we think is appropriate...F12E EPS from ($1.59) to ($1.53); F13E EPS from ($0.32) to ($0.43)."
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 $5.03 yesterday, with a 52 week range of $2.10-$5.49.
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Nomura Securities upgraded Sprint (NYSE: S) from Neutral to Buy. PT raised to $7.
Analyst, Mike McCormack, said, " We believe Network Vision cost-saving prospects are gaining increased credibility, competitive risks are overstated, and that shares offer substantial upside potential with any margin improvement. Sprint’s underlying margins have been steady at around 16% for the past few years, but we view the company as having the ability to have EBITDA service margins in the low 20% range after the project is completed. We see the US market as a bifurcated environment, with AT&T and Verizon operating at superior scale versus all other participants. Sprint shares trade at 5.6x our 2012E EBITDA excluding Network Vision dilution, a meaningful discount to AT&T (NYSE: T) and Verizon (NYSE: VZ) at ~6.3x, which we think is appropriate...F12E EPS from ($1.59) to ($1.53); F13E EPS from ($0.32) to ($0.43)."
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 $5.03 yesterday, with a 52 week range of $2.10-$5.49.
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