UPDATE: Piper Jaffray Raises PT to $6.50 on Sprint Nextel Following Investment Inflow

Piper Jaffray reiterated its Overweight rating on Sprint Nextel

and increased its price target from $6 to $6.50. Piper Jaffray commented, "This morning, Sprint and Softbank confirmed last week's speculation that Softbank was about to make a major investment in Sprint. The companies have now entered into an agreement under which Softbank will invest $20.1 billion into Sprint. The deal will provide Sprint with substantial capital that will enable the company to continue investing in its network and possibly participate in industry consolidation and/or spectrum sales. We believe this is a good move for the company and mildly positive for the stock." Sprint Nextel closed at $5.73 on Friday.