Nomura Securities Maintains a 'Neutral' on Sprint (S); Reducing Estimates & PT Post Analyst Day
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Price: $23.11 -3.06%
Rating Summary:
24 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
24 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Sprint (NYSE: S) price target cut from $4 to $2.50.
Nomura analyst, Mike McCormack, said, "Sprint has accelerated the Network Vision spending plan and now anticipates completing the investment cycle by the end of 2013 vs 2015. We believe the absorption of $10bn in total capex in the 2012-13 time period is higher than what investors had anticipated. After lowering our EBITDA estimates and increasing our capex estimates, we now forecast negative $2.3bn of free cash flow in 2012. We believe investors must begin to factor in a minimum of a $2bn-$3bn capital raise within the next 12-18 months. We expect a difficult capital raising environment, putting equity holders at further risk. Our 2012E EPS goes from ($1.18) to ($1.35)."
For more ratings news on Sprint click here and for the rating history of Sprint click here.
Shares of Sprint closed at $2.41 yesterday.
Nomura analyst, Mike McCormack, said, "Sprint has accelerated the Network Vision spending plan and now anticipates completing the investment cycle by the end of 2013 vs 2015. We believe the absorption of $10bn in total capex in the 2012-13 time period is higher than what investors had anticipated. After lowering our EBITDA estimates and increasing our capex estimates, we now forecast negative $2.3bn of free cash flow in 2012. We believe investors must begin to factor in a minimum of a $2bn-$3bn capital raise within the next 12-18 months. We expect a difficult capital raising environment, putting equity holders at further risk. Our 2012E EPS goes from ($1.18) to ($1.35)."
For more ratings news on Sprint click here and for the rating history of Sprint click here.
Shares of Sprint closed at $2.41 yesterday.
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