Collins Stewart Maintains a 'Neutral' on Sprint (S); Clearwire Drama Continues
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Price: $21.19 +1.19%
Rating Summary:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
23 Buy, 14 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Collins Stewart maintains a 'Neutral' on Sprint (NYSE: S) price target of $3.00.
Collins analyst says, "With the December 1st deadline, Sprint yesterday again continued to reverse course following the October 7th analyst day by announcing that it would provide funding to Clearwire (Nasdaq: CLWR)(Not rated), contingent upon an outside equity raise. In addition, Cleariwre announced that it would make its $237mm interest payment, effectively removing the risk of what could have been an imminent bankruptcy filing. Sprint also announced it would continue to use Cleariwre’s network and market new devices that will run on its network through 2015...It remains our opinion that before Sprint fully resolves its longstanding issues with Clearwire, investors will largely remain on the sidelines."
"AT&T (NYSE: T) – Deutsche Telekom (NYSE: DT) further complicates matters: Should the two companies fail to close some form of its proposed merger now that they have withdrawn their application for consideration by the FCC, we would expect T-Mobile USA to return to the market as a more
aggressive and promotional competitor. Clearly this would not be a positive development for Sprint."
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 $2.70 yesterday.
Collins analyst says, "With the December 1st deadline, Sprint yesterday again continued to reverse course following the October 7th analyst day by announcing that it would provide funding to Clearwire (Nasdaq: CLWR)(Not rated), contingent upon an outside equity raise. In addition, Cleariwre announced that it would make its $237mm interest payment, effectively removing the risk of what could have been an imminent bankruptcy filing. Sprint also announced it would continue to use Cleariwre’s network and market new devices that will run on its network through 2015...It remains our opinion that before Sprint fully resolves its longstanding issues with Clearwire, investors will largely remain on the sidelines."
"AT&T (NYSE: T) – Deutsche Telekom (NYSE: DT) further complicates matters: Should the two companies fail to close some form of its proposed merger now that they have withdrawn their application for consideration by the FCC, we would expect T-Mobile USA to return to the market as a more
aggressive and promotional competitor. Clearly this would not be a positive development for Sprint."
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 $2.70 yesterday.
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