UPDATE: Bank of America Upgrades Sprint Nextel Corporation to Buy on Higher Estimates

Bank of America raised its rating on Sprint Nextel Corporation (NYSE: S) from Neutral to Buy and increased its price objective from $4.50 to $6.

Bank of America commented, "We've been a longtime skeptic on Sprint's stock and our comfort level at raising our rating comes at the cost of having missed a strong move off the recent bottom. Nevertheless, we believe Sprint's shares merit purchase here because 1) our new estimates lead us to believe Street estimates will rise through 2013, a proven stock catalyst, 2) meaningful upside to our target remains using conservative valuation assumptions, and 3) new disclosures this quarter lead us to believe Sprint will generate positive EPS in 2014 which should broaden investor interest in the lowest PE multiple to growth stock in our coverage."

Sprint Nextel Corporation closed at $4.92 on Friday.

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