Nomura Securities Maintains a 'Neutral' on Sprint (S); Taps the Capital Markets at Higher Rates
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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) price target of $2.50.
Nomura analyst, Mike McCormack, says, "Sprint taps the capital markets at higher rates. Sprint announced that it issued $4bn of debt in aggregate. The debt, issued in two tranches, $1bn at 11.5% and $3bn at 9%, carries higher interest rates than the existing debt’s average rate of 7.1%, highlighting the increased execution risk debt and equity investors are facing. The move is unsurprising as management had indicated their intent to access the capital markets during an earlier investor day. We are updating our interest expense and EPS assumptions for 2012. Interest expense increases by $385m to $1.2bn and EPS falls by $0.14 to ($1.25)."
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 $2.74 yesterday.
Nomura analyst, Mike McCormack, says, "Sprint taps the capital markets at higher rates. Sprint announced that it issued $4bn of debt in aggregate. The debt, issued in two tranches, $1bn at 11.5% and $3bn at 9%, carries higher interest rates than the existing debt’s average rate of 7.1%, highlighting the increased execution risk debt and equity investors are facing. The move is unsurprising as management had indicated their intent to access the capital markets during an earlier investor day. We are updating our interest expense and EPS assumptions for 2012. Interest expense increases by $385m to $1.2bn and EPS falls by $0.14 to ($1.25)."
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 $2.74 yesterday.
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