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Deutsche Bank Upgrades Sprint (S) to Buy w/PT of $9.25 (Excludes M&A)

February 12, 2014 6:59 AM EST Send to a Friend
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Price: $5.54 -1.25%

Rating Summary:
    9 Buy, 21 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 52
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Deutsche Bank upgraded Sprint (NYSE: S) from Hold to Buy with a price target of $9.25 (unchanged). The price target excludes M&A.

"We have not materially changed estimates. Instead, our upgrade to Buy reflects the recent pullback in the stock and is based on the same 2 key themes we outlined last July: (1) a significant spectrum advantage and (2) an outlook for material EBITDA growth during the next 2 years. We are not factoring in any M&A, NOL value or significant share gains. Rather, we continue to model substantial sub losses in 1H14 followed by a return to modest growth once Network Vision is complete. We therefore see more potential upside to our long term estimates than downside risk to our nearer term forecasts," said analyst Brett Feldman.

"Numerous media reports indicate that Sprint is considering a bid for T-Mobile (NYSE: TMUS). We discussed this in a note on 12/16/13. As we highlighted in that note, a merger could potentially yield annual cost synergies approaching $3 billion. But, we maintain our view that a merger is unlikely in the near-term due to regulatory concerns. We therefore do not factor any potential upside from a merger into our estimates or into our valuation framework for Sprint," he added.

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 $7.90 yesterday.




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