Goldman Sachs Resumes Sprint (S) at Sell
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Price: $20.61 -0.1%
Rating Summary:
15 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
15 Buy, 13 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Goldman Sachs resumed coverage on Sprint (NYSE: S) with a Sell rating and a price target of $5.00. Analyst Jason Armstrong thinks Sprint will be a disruptor in 2015/16. In the meantime, he expects free cash flow burn of about $8 billion.
"We expect operating trends to be pressured as Sprint invests and as competition ramps," said Armstrong. "As a result of negative FCF, we expect leverage to remain at peer-high levels (4X) through 2014. Similarly, while EBITDA benefits from Network Vision accrue, a rising net debt balance is likely to keep valuation rich at over 7X 2014 EBITDA (highest among peers, despite Sprint lacking an M&A-related catalyst). Finally, with the debate recently shifting to 2015 EBITDA (post Network Vision), we see downside to consensus estimates; our forecast is -7% vs. recent consensus and -12% to -19% vs. Softbankâs proxy forecasts."
For an analyst ratings summary and ratings history on Sprint (NYSE: S) click here. For more ratings news on Sprint click here.
Shares of Sprint closed at $6.05 yesterday.
"We expect operating trends to be pressured as Sprint invests and as competition ramps," said Armstrong. "As a result of negative FCF, we expect leverage to remain at peer-high levels (4X) through 2014. Similarly, while EBITDA benefits from Network Vision accrue, a rising net debt balance is likely to keep valuation rich at over 7X 2014 EBITDA (highest among peers, despite Sprint lacking an M&A-related catalyst). Finally, with the debate recently shifting to 2015 EBITDA (post Network Vision), we see downside to consensus estimates; our forecast is -7% vs. recent consensus and -12% to -19% vs. Softbankâs proxy forecasts."
For an analyst ratings summary and ratings history on Sprint (NYSE: S) click here. For more ratings news on Sprint click here.
Shares of Sprint closed at $6.05 yesterday.
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