If the HTC EVO and Sprint-Nextel’s services continues to meet or exceed subscriber expectations, as time passes look for a continuing gradual shift of subscribers to Sprint-Nextel. And with that, expect to see more and more deep discounts on the ubiquitous iPhone.
Sprint has $4.4B in cash, reducing net debt to roughly $17B. Second, Sprint has about $6B in trailing EBITDA. The Company is leveraged at under 3.0x Net Debt/EBITDA and anyone familiar with leveraged finance would realize that this is hardly an aggressive leverage multiple. Last, S faced little refinancing risk, with most maturities in the next two years under $2B.
Sprint phone is merely destined to become the latest “it” Android phone — not the latest “it” phone.
We see Sprint at $6.40 price target by summers end. Get your FREE Sprint Stock Analysis By Clicking Here no strings attached.
