Bears Control Over 25% of Sprint Corp (S) But Catalysts for Further Upside Remain: Wells Fargo
Sprint is the most interesting stock on our wireless list right now, says Wells Fargo
Sprint Corp (NYSE:S) shares have shot up 65% year-to-date, encouraging Wells Fargo analyst Jennifer Fritzsche to continue recognizing exciting potential in the mobile network giant.
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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