He cut his EPS estimates for the company to 88 cents from 91 cents for this year, and to $1.05 from $1.10 for next year.
“Sprint is executing on its many challenges, but at a slower pace than we had hoped,” he wrote in a research note.
At the current price, we believe S shares are discounting a return to growth in [the second quarter] and margin rebound in 2008 - both of which remain uncertain.
Cusick maintains a Market Weight rating on the stock.
Monday, Sprint CEO Gary Forsee spoke at a Bear Stearns tech and telecom conference. Cusick notes that Forsee “expressed willingness” to partner with or sell part of its 4G wireless network business, while maintaining control.
While nothing seems to be in the works, we believe that this could reassure investors who are skeptical on the long-term value of 4G, while keeping the exposure to what could potentially be a competitive advantage for S in 2008 [and beyond].