Citigroup Reiterates BUY, Adjusts Estimates for Sprint Nextel

In a recent research note, Citigroup Global Markets has reiterated its BUY status on Sprint Nextel (NYSE: S) and adjusted its estimates on the stock as the company improved liquidity position with a $4 billion debt issuance.

According to Citigroup. "The total debt issuance of $4 billion was more than the $2.5 billion we had expected to be issued during the fourth quarter, and matches Sprint's recently issued target for debt issuance through the public debt markets. Sprint is still likely to pursue $1-3 billion of incremental borrowing capacity through vendor financing over the next 3-6 months, in our view. We now estimate Sprint will end 2011 with $7.7 billion of cash with an additional $1 billion of borrowing capacity from the current availability on its revolver." Citigroup stated that "revenue & OIBDA forecasts are similar to our prior forecasts with some modest OIBDA adjustments for 2012 and 2013. ... EPS changed for 4Q/11 from ($0.32) to ($0.31), for FY11 from ($0.85) to ($0.84), for FY12 from ($1.02) to ($1.03) and for FY13 from ($0.46) to ($0.53)."

Sprint Nextel (NYSE: S) closed last week trading at $2.87 a share.