Sprint Hits Year Low In Wake Of Aggressive Promo Plan

Benzinga

Sprint (NYSE: S) shares hit a 52-week low Tuesday in the wake of its plan to offer an aggressive pricing promotion.

On Monday the company unveiled an offer of up to 10 lines, with 20GB of shared data and unlimited talk and text for $100 a month through 2015.

"We expect a muted response to the offer," Wunderlich's Mike McCormack said in a note, citing "ongoing network quality issues" and the promotion's timing prior to Apple's latest iPhone launch.

McCormack slashed his Sprint target by more than 40 percent to $4 per share, from $7, while maintaining and Underperform rating.

Sprint recently backed out of a $32 billion plan to acquire T-Mobile and named Marcelo Claure as chief executive, replacing Dan Hesse.

Sprint traded recently at $5.39 per share, down 4.2 percent.

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