Back to top

The Zacks Analyst Blog Highlights: Sprint Nextel, Clearwire, AT&T, Apple and MetroPCS Communications

Read MoreHide Full Article

For Immediate Release

Chicago, IL – March 1, 2012 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Sprint Nextel Corp. ( (S - Free Report) , Clearwire Corporation , AT&T Inc. ( (T - Free Report) , Apple Inc (AAPL - Free Report) and MetroPCS Communications Inc. ( .

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter:

Here are highlights from Wednesday’s Analyst Blog:

Sprint Raising Additional Funds

The third-largest U.S. wireless carrier Sprint Nextel Corp. ( (S - Free Report) plans to raise $2 billion in debt offering to address the growing costs of network upgrade, iPhone subsidies, debt maturities and a possible funding for its partner Clearwire Corporation . With a 54% economic stake in Clearwire, Sprint offers high-speed data to its subscribers through the latter’s 4G WiMax (a wireless broadband technology) networks.

Sprint will sell notes due in 2017 and 2020 through a private placement, expected to completed by March 1. This sale of notes is in addition to the $4 billion raised in November last year. Sprint is taking advantage of the falling interest rates in the capital market as it is in the midst of a multibillion-dollar network upgrade.

The company is concentrating on the core Sprint platform, which includes CDMA, WiMAX, Long-Term Evolution (LTE), and other network technologies. Sprint is advancing on its Network Vision plan as it started terminating the Nextel platform, which refers to the iDEN business. The company is switching to the 4G upgraded version, LTE technology, and plans to launch in the 1.9 GHz band in mid 2012 with full deployment by year-end 2013.

We believe the network upgrade will be beneficial for Sprint as it has been losing money to its largest rivals, such as AT&T Inc. ( (T - Free Report) over the past few years.

Additionally, though Apple Inc‘s (AAPL - Free Report) iPhone is treated as a fresh breath of life for Sprint, it is expected to pressure OBITDA in initial years before beginning to contribute in 2015. Sprint has promised to pay $15.5 billion to Apple over the next four years to promote the product. Therefore, the company has to pay 40% more subsidy than other smartphone that equates to more than $200 per device.

Further, the debt sale comes after the rumors that the board of Sprint terminated a plan to acquire MetroPCS Communications Inc. ( for $8 billion, as the deal seems expensive given the current price.

We currently maintain our long-term Neutral recommendation on Sprint. For the short term (1–3 months), the stock retains a Zacks #3 (Hold) Rank.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter:

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today:

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at

Visit for information about the performance numbers displayed in this press release.

Follow us on Twitter:

Join us on Facebook:

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Sprint Corporation (S) - free report >>

AT&T Inc. (T) - free report >>

Apple Inc. (AAPL) - free report >>

More from Zacks Press Releases

You May Like