Kaufman Bros. Maintains a 'Buy' on Clearwire (CLWR); China Mobile (CHL) Agrees to Collaborate on TD-LTE

Kaufman Bros. maintains a 'Buy' on Clearwire (NASDAQ: CLWR) price target of $6.00.

Kaufman analyst says, "Yesterday, Clearwire announced that it will collaborate with China Mobile (NYSE: CHL) on creating a strong device ecosystem for TD-LTE, a configuration of LTE that differs from what will be deployed at the large carriers in the U.S. (which are deploying FDD-LTE). We believe this notably changes the trajectory for how quickly Clearwire can achieve economies of scale with available products."

"We expect wholesale net add strength to continue this quarter as Sprint (NYSE: S) reduced the pricing on its 4G EVO late in 2Q11. We believe the company can turn adjusted EBITDA positive in 1Q12, after a further stepdown in SG&A this quarter and flattish cost of service going forward (excluding non-cash write downs). We believe Clearwire will need an incremental $300 million in funding by mid-2012 for working capital, which excludes potentially $600 million the company will need for LTE deployment..."

For more ratings news on Clearwire click here and for the rating history of Clearwire click here.

Shares of Clearwire closed at $2.73 yesterday.

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