Credit Suisse Upgrades Sprint (S) to Neutral

(Updated at 10:42 AM)

Credit Suisse upgraded Sprint (NYSE: S) from Underperform to Neutral.

Analyst Joseph Mastrogiovanni said, "We are upgrading Sprint to Neutral from Underperform, as we believe valuation has moved to a more appropriate level. Additionally, while we don't see it as high probability in the near-term, Softbank is flush with liquidity from the Alibaba IPO that could be used to acquire the remaining 20% of Sprint. Finally, we expect Sprint to turn net add positive in 4Q14, which could be a catalyst; although we are not convinced it would portend a long-term fix of the business."

"Our Underperform rating was based largely on valuation, as we did not feel Sprint warranted a premium to the group. At roughly $6/share, the company is now trading at a CY2015E EV/EBITDA multiple of 6.2x compared to a peer average of 6.1x. This is also in line with our DCF based target price of $6/share," added the analyst.

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 $6.00 yesterday.

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