S&P Reiterates its BUY Rating on Sprint Nextel, Target Price Reduced

October 11 00:00 2011

NEW YORK, October 11 (RainbowNewsLine.com) – Analyst James Moorman of S&P Equity Research reiterates his BUY rating on Sprint Nextel (NYSE: S), while reducing his estimates for the company. The target price has been reduced from $6 to $5.

Analyst James Moorman, in a research note published yesterday mentions that the inclusion of iPhone remains significant in subscriber’s growth but would hurt Sprint Nextel’s short-term margins through increased subsidies. The requirement for additional capital may come from iPhone and Network Vision subsidies, but the company can subdue a part of it using their $1 billion revolver, the analyst says. The EPS estimates for 2011 has been lowered to -$0.88, while 2012 EPS is lowered to -$0.97.