UPDATE: Bernstein Cuts Sprint (S) to Underperform, Discusses Bankruptcy Risk
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Price: $20.05 -2.72%
Rating Summary:
15 Buy, 13 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
15 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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(Updated - March 19, 2012 11:12 AM EDT)
Bernstein's Craig Moffett downgraded Sprint (NYSE: S) from Market Perform to Underperform Monday morning, saying the risks of bankruptcy are rising. The analyst reduced his price target on the stock from $2.50 to $1.75.
Moffett said while he is not predicting a bankruptcy, it is a very legitimate risk. The analyst pointed to five-year credit default swaps which already have a 50/50 chance of bankruptcy priced in.
Moffett believes if Clearwire (Nasdaq: CLWR) is unable to refinance on its own, Sprint may also have to refinance, adding "substantial additional risk" to the equation.
With Sprint shares trading down 4 percent to $2.77 at last check, Moffett's new price target represents potential downside of about 37 percent.
For an analyst ratings summary and ratings history on Sprint click here. For more ratings news on Sprint click here.
Bernstein's Craig Moffett downgraded Sprint (NYSE: S) from Market Perform to Underperform Monday morning, saying the risks of bankruptcy are rising. The analyst reduced his price target on the stock from $2.50 to $1.75.
Moffett said while he is not predicting a bankruptcy, it is a very legitimate risk. The analyst pointed to five-year credit default swaps which already have a 50/50 chance of bankruptcy priced in.
Moffett believes if Clearwire (Nasdaq: CLWR) is unable to refinance on its own, Sprint may also have to refinance, adding "substantial additional risk" to the equation.
With Sprint shares trading down 4 percent to $2.77 at last check, Moffett's new price target represents potential downside of about 37 percent.
For an analyst ratings summary and ratings history on Sprint click here. For more ratings news on Sprint click here.
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