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UPDATE: Nomura Securities Upgrades Sprint (S) to Buy; Network Vision Cost-Saving Prospects Gaining Visibility

September 10, 2012 7:42 AM EDT
Get Alerts S Hot Sheet
Price: $23.31 +2.78%

Rating Summary:
    15 Buy, 13 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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(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.


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