Nomura Securities Downgrades Sprint (S) to Neutral

Nomura Securities downgraded Sprint (NYSE: S) from Buy to Neutral with a price target of $7.50 citing unbalanced risk/reward.

Analyst Mike McCormack weighs said, "we are downgrading Sprint to Neutral but maintaining our estimates and $7.50 target price. We believe there is little incremental upside for Sprint shares on either a standalone basis or a pro forma basis for the Softbank and Clearwire transactions. The company has done a good job executing on Network Vision to date, but we believe cost savings are largely accounted for in our estimates."

He added, "We also believe Sprint shares are already discounting a bidding war between Softbank and DISH, limiting the upside of raised bids versus our target price. Should Sprint's Board of Directors reject DISH’s offer, we see downside risk to the shares."

For an analyst ratings summary and ratings history on Sprint click here. For more ratings news on Sprint click here.

Shares of Sprint closed at $7.34 yesterday.

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