Wells Fargo Lifts Target Range On Sprint By ~40%, Sees 2015 As The 'Key'
Wells Fargo's Jennifer Fritzsche boosted her valuation range on shares of Sprint (NYSE: S) by more than 40 percent Thursday afternoon, from $7.75-8.25 to $11-11.75. The analyst maintains an Outperform rating on the stock.
Fritzsche cited several factors
- expanding margins;
- a possibility for M&A; and
- the value of spectrum.
2015 will be very important for Sprint according to Fritzsche; she called the year "key." The Wells Fargo analyst sees Sprint margins similar to T-Mobile US (NYSE: TMUS) as in the line of sight.
Fritzsche believes a Sprint deal with T-Mobile US will be "extremely" beneficial to earnings.
With shares of Sprint up 3 percent to $9.96 at last check, the midpoint of the analysts new valuation range implies potential upside of about 14 percent.
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