Deutsche Bank Maintains Hold Rating and $3 PT on Sprint Nextel

A report from Deutsche Bank reiterates its Hold rating and $3 price target on Sprint Nextel Corp. (NYSE: S).

The report states, “We believe that Sprint's new agreements with Clearwire ($2.03, NR) covering wholesale WiMAX and LTE services, LTE network design and a potential equity investment are positive steps for Sprint as they help reduce strategic uncertainty. We also believe the headline payment figure of $1.6B overstates the actual financial impact to Sprint as most of (if not more than) the agreed upon wholesale payments would have been made to Clearwire anyhow.”

S closed yesterday at $2.70.