CLWR May Expand to New Markets Earlier Than Expected
Analysts at UBS upgrade Clearwire Corp (NASDAQ: CLWR) from "sell" to "neutral," while reducing their estimates for the company. The target price for CLWR has been raised from $3 to $6.
Following the recent sale of $1.6 of debt, CLWR has further added the sale of an additional $920 million in debt. According to UBS, CLWR has approximately $4.8 billion in cash, which is likely to help in the company to accelerate capacity building and capacity expansion.
The capital raised by Clearwire has eliminated UBS’ concerns related to the company’s ability to finance its roll-out and capitalize on the WiMAX opportunity. The analysts believe that there is possibility of CLWR expanding to new markets earlier than expected.
UBS has reduced its EPS estimate for 2009 from -$1.55 to -$1.60.
