Barclays top analyst Amir Rozwadowski provides insight on shares of Sprint Corp (NYSE:S) on the heels of “lighter-than-expected” capital expenditures for the first half of 2016 with a spending budget already cut by 40%.
As investors question how the mobile network giant ultimately drives its spending strategy, Rozwadowski reiterates an Equal Weight rating on S, while raising the price target to $6, which represents a 5% decrease from where the stock is currently trading.
The analyst explains, “Despite its improving network quality, the carrier still lags its peers in many cases, based on testing firm results. Its own admission that a key element of its diminished capital intensity is due to the timing of small cell deployments will likely keep questions on whether it can execute on its “more for less” network improvement strategy on the table.”
While Rozwadowski acknowledges Sprint’s “network seems to be getting better,” the analyst concludes, “While management’s cost reduction efforts and network improvement initiatives are notable, questions on sustainability and its current risk/reward keep us on the sidelines with respect to the shares.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, top five-star analyst Amir Rozwadowski has achieved a high ranking of #85 out of 4,166 analysts. Rozwadowski upholds a 66% success rate and yields 27.7% in his yearly returns.
TipRanks analytics demonstrate S as a Hold. Based on 14 analysts polled in the last 3 months, 3 rate a Buy on S, 8 maintain a Hold, while 3 issue a Sell. The 12-month average price target stands at $5.16, marking a 19% downside from where the shares last closed.