UPDATE: DA Davidson Upgrades Clearwire Back to Buy on Lower Opening Price

DA Davidson raised its rating on Clearwire CLWR from Neutral to Buy with a reiterated $3 price target. Earlier, DA Davidson had moved to downgrade shares from Buy to Neutral. DA Davidson commented, "We issued a downgrade of CLWR when we were looking at the closing price of the stock at $2.69 and there was only 12% upside to our target. Now with the stock trading off so quickly, we are reinstating our BUY rating. We expect the stock to be volatile in the near term, but with S in a much stronger financial position with the Softbank investment we think there is more visibility of CLWR either getting funding to stay solvent, or being taken over by S in mid-to-late 2013." Clearwire closed at $2.69 on Monday and opened at $2.20 per share on Tuesday.