UBS Maintains a 'Neutral' on Clearwire (CLWR); A New Lease on Life – But with Less Growth

UBS maintains a 'Neutral' on Clearwire (NASDAQ: CLWR) price target raised from $1.50 to $2.00.

UBS analyst says, "We have updated our model for 1) the new deal with Sprint (NYSE: S), 2) recent and prospective fund raising and 3) the LTE overlay. While the company has ~2 years of additional runway (at a cost of 41% dilution to equity holders), we now expect total revenues at Clearwire to decline in 2012 and 2013 before returning to growth in 2014...EPS for 2011E goes to -$1.81 (prev. -$2.26). 2012E EPS is -$1.21 (prev. -$1.36), and 2013E EPS is -$1.03 (prev. -$1.20). We remain on the sidelines given the fundamentals."

"We now expect 2012 revenues to fall 3% to $1.22B (prev $1.50B) while 2013 revenues decline slightly to $1.21B (prev $1.45B) after the 125% growth we expect the company to generate in 2011. We now expect an adj. EBITDA of -$76M in 2012 (prev. +$185M) and $113M in 2013 (prev. $294M)."

For an analyst ratings summary and ratings history on Clearwire click here. For more ratings news on Clearwire click here.

Shares of Clearwire closed at $1.92 yesterday.

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