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Wells Fargo Lifts Target Range On Sprint By ~40%, Sees 2015 As The 'Key'

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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.

Posted-In: Analyst Color News Price Target Analyst Ratings

 

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