Collins Stewart Maintains a 'Neutral' on Sprint (S); No Deal? Possible Negative for Towers
Tweet
Share
E-mailGet Alerts S Hot Sheet
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
Join SI Premium – FREE
Collins Stewart maintains a 'Neutral' on Sprint (NYSE: S) price target of $3.00.
Analyst, Greg Miller, said, "It was reported on Friday after the close that Sprint’s board had voted down a proposal to merge with MetroPCS (NYSE: PCS). Although unconfirmed by either company, the deal would have valued MetroPCS at 30% premium, presumably prior to the recent run in the company’s stock price. As we highlighted last week following the company’s solid 4Q11 earnings report, we do not believe only one larger wireless company would be interested in MetroPCS. Interestingly, on Monday morning Sprint announced a plan to offer $2bn in notes due in 2017 and 2020. Despite the coincidence in timing, we believe the notes will mostly likely be for Network Vision project and/or potential funding for Clearwire (Nasdaq: CLWR)."
Miller also believes talks between Sprint and T-Mobile have not yet been revived and MetroPCS is probably not interested in renewing long stalled talks with Leap Wirelesss (Nasdaq: LEAP). Miller thinks that if MetroPCS finds a buyer instead of investing in additional spectrum or cell sites, it could be a mild negative for American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (Nasdaq: SBAC).
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 $2.47 yesterday.
Analyst, Greg Miller, said, "It was reported on Friday after the close that Sprint’s board had voted down a proposal to merge with MetroPCS (NYSE: PCS). Although unconfirmed by either company, the deal would have valued MetroPCS at 30% premium, presumably prior to the recent run in the company’s stock price. As we highlighted last week following the company’s solid 4Q11 earnings report, we do not believe only one larger wireless company would be interested in MetroPCS. Interestingly, on Monday morning Sprint announced a plan to offer $2bn in notes due in 2017 and 2020. Despite the coincidence in timing, we believe the notes will mostly likely be for Network Vision project and/or potential funding for Clearwire (Nasdaq: CLWR)."
Miller also believes talks between Sprint and T-Mobile have not yet been revived and MetroPCS is probably not interested in renewing long stalled talks with Leap Wirelesss (Nasdaq: LEAP). Miller thinks that if MetroPCS finds a buyer instead of investing in additional spectrum or cell sites, it could be a mild negative for American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (Nasdaq: SBAC).
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 $2.47 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Genco rejects Diana Shipping bid, calls offer below NAV
- UBS Reiterates Buy Rating on NVIDIA (NVDA), Expects Q2 Revenue Beat
Create E-mail Alert Related Categories
Analyst Comments, Mergers and Acquisitions, RumorsRelated Entities
Collins Stewart, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
