The Word on the Street: Analyst Recommendations for Sprint ahead of 4Q15 Earnings
Sprint Keeps Losing, but Will It Only Get Worse Fiscal 4Q15?
Sprint’s price performance
In this series, we’ve looked at Sprint’s (S) value proposition among the top mobile players in the US. We’ve also noted that Sprint’s forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple was the lowest among these companies as of April 25, 2016. By comparison, T-Mobile (TMUS) had a lower comparable figure than integrated players Verizon (VZ) and AT&T (T).
Sprint’s stock price movements during the one-month and three-month periods were in the positive territory as of April 25, 2016. In the past month, in fact, the stock gained ~16.6%, and it rose by ~27.1% in the past three-month period as of the same day.
Wall Street’s take on Sprint
Among 31 Wall Street analysts covering Sprint as of April 25, 2016, most (~64.5%) have recommended a “hold” on the stock. The proportion of “sell” recommendations on the stock was ~25.8%, and the remaining ~9.7% of these analysts recommend a “buy.”
The median target price from Wall Street analysts for Sprint was ~$3.5 as of April 25, 2016. The stock’s closing price was $3.8 as of the same date.
For a diversified exposure to some telecom companies in the US, you might consider the SPDR S&P 500 ETF (SPY). SPY held a total of ~2.8% in AT&T (T), Verizon (VZ), CenturyLink (CTL), Frontier Communications (FTR), and Level 3 Communications (LVLT) at the end of March 2016.
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