UPDATE: Oppenheimer Upgrades Sprint (S) to Perform

(Updated - January 27, 2016 9:24 AM EST)

Oppenheimer upgraded Sprint (NYSE: S) from Underperform to Perform. The change follows the release of Q3 results. Analyst Timothy Horan noted its network is improving and he pointed out lower expenses.

"Sprint reported a solid CY4Q15, with churn of 1.6% vs. our 1.7% est. and a greatly lower cost structure with another $2 billion reduction in expenses in 2016. FCF burn is high at ~$500M but should be positive in 2017. Mgmt guided to strong EBITDA growth in 2016-17. Positively, the network is improving, and this should continue, and subscriber trends have stabilized, although with lower ARPU and declining prepaid, both of which should persist for another few quarters. Sprint also now has a greatly improved liquidity position (vendor and handset financing). The company also has some price increases kicking in starting in February. We are upgrading S to Perform, and believe M&A is possible. The price increases and expense reductions are positive for the sector," said Horan.

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 $2.99 yesterday.

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