Though Fritzsche zeros in on concerns surrounding lack of real cash flow, which help to drive the short float over 25%, he still believes Sprint is in an excellent position nonetheless.
Up from Fritzsche’s projection of $2.7 billion in the fiscal year of 2015, the analyst now estimates service free cash flow for the fiscal year of 2016 will reach a range between $4.5 and $5 billion. Accordingly, Fritzche reiterates an Overperform rating on S with a valuation range of $8 to $10.
Fritzsche contends, “We believe Sprint is the most interesting stock on our wireless list right now. We view Sprint’s outlined path for Network Vision very positively. Potential catalysts include: continued M&A potential, margin expansion and deployment of 2.5GHz spectrum.”
According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Jennifer Fritzsche is ranked #149 out of 4,124 analysts. Fritzche upholds a high 75% success rate and earns 18.9% in her annual returns. When recommending S, Fritzsche realizes 46.9% in average profits on the stock.
TipRanks analytics show S as a Hold. Based on 13 analysts polled in the last 3 months, 3 rate a Buy on S, 7 maintain a Hold, while 3 issue a Sell. The 12-month average price target stands at $4.93, marking an 18% downside from where the shares last closed.
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