Collins Stewart Comments on Sprint (S) and Recent Speculations, Long-Term Buy
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Price: $22.10 --0%
Rating Summary:
23 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 30
Rating Summary:
23 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 6 | New: 30
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Collins Stewart is reiterating its Buy rating and $5 price target on shares of Sprint (NYSE: S) and highlights that it is a stock for the long-term.
The company is currently in the middle of many rumors and speculations which has driven volatility on the stock extremely high. The firm notes that shares will rise and fall throughout the news as many investors take the news differently and put their own perspective on it.
The firm believes that the arrival of the iPhone to Sprint will be positive for the stock and its shareholders, as it was for AT&T (NYSE: T) and Verizon (NYSE: VZ). Collins Stewart forecasts that the phones initial dilution would be more than offset by the lift in service revenue toward the second half of 2012.
Last weeks speculations that Clearwire (Nasdaq: CLWR) may be pursuing an equity dilutive restructuring options may be bad for shareholders if proven to be factual. The firm does not believe that it will happen and is not surprised to hear such speculation as Sprints negotiation power with CLWR has been increasing over time.
An analyst at Collins Stewart comments, "Although the potential introduction of the iPhone could further delay the ultimate turnaround in the wireless margins at Sprint, we believe many of the negatives are now well understood by investors and priced in the shares, setting up a fairly low bar for 2H11 expectations."
For more ratings news on Sprint click here and for the rating history of Sprint click here.
Shares of Sprint closed at $3.55 yesterday.
The company is currently in the middle of many rumors and speculations which has driven volatility on the stock extremely high. The firm notes that shares will rise and fall throughout the news as many investors take the news differently and put their own perspective on it.
The firm believes that the arrival of the iPhone to Sprint will be positive for the stock and its shareholders, as it was for AT&T (NYSE: T) and Verizon (NYSE: VZ). Collins Stewart forecasts that the phones initial dilution would be more than offset by the lift in service revenue toward the second half of 2012.
Last weeks speculations that Clearwire (Nasdaq: CLWR) may be pursuing an equity dilutive restructuring options may be bad for shareholders if proven to be factual. The firm does not believe that it will happen and is not surprised to hear such speculation as Sprints negotiation power with CLWR has been increasing over time.
An analyst at Collins Stewart comments, "Although the potential introduction of the iPhone could further delay the ultimate turnaround in the wireless margins at Sprint, we believe many of the negatives are now well understood by investors and priced in the shares, setting up a fairly low bar for 2H11 expectations."
For more ratings news on Sprint click here and for the rating history of Sprint click here.
Shares of Sprint closed at $3.55 yesterday.
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