Nomura Securities Maintains a 'Neutral' on Sprint (S); Review of Risk/Reward
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Price: $21.82 -5.58%
Rating Summary:
23 Buy, 14 Hold, 0 Sell
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Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
23 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Nomura Securities maintains a 'Neutral' on Sprint (NYSE: S).
Nomura analyst, Mike McCormack, said, "With Sprint shares already receiving a premium valuation following a three month ~31% appreciation, we think it is an important time to review the risk/reward for Sprint shares, with a particular focus on core operations. We think normalized capital spending will absorb the possible margin benefits of Network Vision as we believe that S has underspent on its wireless network. We also note that scale and market competition are not alleviated by Network Vision. In addition, after further reviewing 1Q earnings, we find that excluding a benefit from internal transfer pricing, wireless margins contracted, and incremental free cash flow deteriorated from a slowly escalating capex profile. If 2Q capex and margin trends are similar to 1Q, investors will likely rethink the timing of margin accretion and long-term capital intensity."
For more ratings news on Sprint click here and for the rating history of Sprint click here.
Shares of Sprint closed at $5.67 yesterday.
Nomura analyst, Mike McCormack, said, "With Sprint shares already receiving a premium valuation following a three month ~31% appreciation, we think it is an important time to review the risk/reward for Sprint shares, with a particular focus on core operations. We think normalized capital spending will absorb the possible margin benefits of Network Vision as we believe that S has underspent on its wireless network. We also note that scale and market competition are not alleviated by Network Vision. In addition, after further reviewing 1Q earnings, we find that excluding a benefit from internal transfer pricing, wireless margins contracted, and incremental free cash flow deteriorated from a slowly escalating capex profile. If 2Q capex and margin trends are similar to 1Q, investors will likely rethink the timing of margin accretion and long-term capital intensity."
For more ratings news on Sprint click here and for the rating history of Sprint click here.
Shares of Sprint closed at $5.67 yesterday.
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