UPDATE: Oppenheimer Downgrades Sprint Corporation to Underperform as Price War Hits Margins

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In a report published Thursday, Oppenheimer analyst Timothy Horan downgraded the rating on
Sprint CorporationS
from Perform to Underperform. In the report, Oppenheimer noted, “We believe Sprint will be the most negatively impacted by competitive responses, and we think the stock is overvalued after factoring in $8B in expenditures for the broadcast spectrum auctions. Sprint is now trading at 8.8x our 2016E EBITDA estimate, which is nearly a 2x premium to the carriers, and not justified given negative FCF. We believe additional share issuances are on the horizon and will cause further equity dilution.” Sprint Corporation closed on Wednesday at $4.39.
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Posted In: Analyst ColorDowngradesAnalyst RatingsOppenheimerTimothy Horan
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