What Do Wall Street Analysts Recommend for Sprint?



Price performance of Sprint

Earlier in this series, we looked into some aspects of Sprint’s (S) value proposition among major US wireless players. We saw that Sprint’s forward EV/EBITDA (or enterprise value to earnings before interest, tax, depreciation, and amortization) multiple was the lowest among these players as of March 28, 2016. Meanwhile, T-Mobile (TMUS) had a lower figure in this metric than the integrated players, AT&T (T) and Verizon (VZ). Now we will look at select market-based views and metrics for Sprint.

Let’s start with the price performance of Sprint’s stock. The price movements of Sprint during the one-month and three-month periods were in the negative territory as of March 28, 2016.

In the past three-month period, the price has fallen by ~15.3%. The price fell ~5.2% in the past month as of March 28, 2016.

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Wall Street’s view on Sprint

Now let’s look at analysts’ perspective on Sprint as of March 28, 2016. ~70% of the total analysts covering the stock gave it a “hold” while ~23.3% gave it a sell. The remaining ~6.7% of these analyst recommendations were “buy.”

In addition, the average target price for Sprint from Wall Street’s analysts was ~$3.54 as of March 28, 2016. The closing price of the telecom company was $3.26 as of the same date. For diversified exposure to telecom players in the US, you may consider investing in the SPDR S&P 500 ETF (SPY).

The ETF held a total of ~2.4% in US telecom players at the end of December 2015.


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