What Does Wall Street Think Of Sprint Now?

The market wasn’t impressed by Sprint Corp’s S Q1 earnings report that the company released on Tuesday, as shares tumbled more than 3.6 percent Wednesday’s trading session.

But what does Wall Street think of Sprint after digesting it’s Q1 numbers? Here’s a breakdown of what five firms have to say about Sprint now.

Pacific Crest

Analysts at Pacific Crest like the company’s net postpaid additions but are concerned by continued postpaid phone losses and the stock’s nearly 12 percent price premium compared to its peers. Pacific Crest has a Sector Weight rating on Sprint.

Canaccord

Canaccord analysts question the legitimacy of the port positive numbers reported by Sprint and competitors Verizon Communications VZ, AT&T Inc T, and T-Mobile US Inc TMUS and point out the mathematical impossibility of all four companies somehow gaining market share from each other at the same time. Analysts also have yet to see tangible shareholder benefits to Sprint’s Network Vision. Canaccord has a Hold rating on Sprint and a $5 target for the stock.

RBC Capital Markets

RBC analysts saw Sprint’s Q1 performance as lackluster despite improvements in postpaid churn and upgrade rate. RBC maintains its Sector Perform rating on Sprint, but lowered its price target from $6 to $5.

Morgan Stanley

Morgan Stanley analysts were pleasantly surprised by Sprint’s 170,000-plus postpaid net adds, but were disappointed by the company’s adjusted EBITDA of only $1.74 billion compared to Morgan Stanley’s estimate of $1.92 billion. The firm has an Underweight rating on Sprint.

Barclays

Barclays analysts note that postpaid subscriber growth, churn reduction and improving cash burn are positives for Sprint, but worry that visibility on a sustainable turnaround “remains elusive.” Barclays has an Equal Weight rating on Sprint and a $5 target on the stock.