Sprint shares climb after Deutsche Bank issues upgrade, seeing improvement
By APWednesday, May 5, 2010
Sprint shares climb after Deutsche Bank upgrade
NEW YORK — Shares of Sprint Nextel climbed Wednesday as a Deutsche Bank analyst upgraded his rating on the wireless carrier, saying business is stabilizing.
Analyst Brett Feldman said there are signs of improvement in postpaid subscriber additions and wireless service revenue, both of which are poised to turn positive in the second half of the year.
Feldman upgraded Sprint to “Buy” from “Hold,” and raised his target price to $6 from $4.75.
Despite positive trends, however, Feldman said the stock valuation for the country’s third-largest wireless carrier “continues to imply the business is in terminal decline and not, as we believe, turning the corner.”
Shares of Sprint Nextel Corp. climbed 11 cents, or 2.6 percent, to $4.20 in afternoon trading.
