- Wells Fargo has raised its Sprint (S +3.1%) valuation range to $11-$11.75 from $7.75-$8.25, and predicts ongoing reports of a Sprint/SoftBank bid for T-Mobile USA (TMUS +0.7%) will continue to bolster shares.
- The firm also thinks the value of Sprint's spectrum (increased by the Clearwire acquisition) helps create a base for shares, and notes a T-Mobile deal would produce major cost savings.
- Meanwhile, Reuters observes the Obama Administration has taken a skeptical view towards consolidation between major carriers and pay-TV providers, something that could stand in the way of a Sprint/T-Mobile deal.
- New FCC chairman Tom Wheeler recently stated his organization has a responsibility to "protect competition that exists and promote competition in those areas where it doesn't." Likewise, DOJ antitrust attorney William Baer has said the Department "believes it is essential to maintain vigilance against any lessening of the intensity of competitive market forces."
Sprint rallies; Wells Fargo sees T-Mobile reports providing a lift
Dec 26 2013, 12:24 ET