- Walter Piecyk at BTIG Research has downgraded Sprint (S -3.3%) shares to Sell, from Neutral, with some blunt language: “We do not see a path by which Sprint can return to revenue growth, let alone EBITDA growth or positive free cash flow.”
- And he adds that "we are tired of waiting" for Softbank's (OTCPK:SFTBY) backing to spur a turnaround: He "simply can't ignore the high cash burn rate and recent comments by Sprint’s Chairman Masa Son and latest CEO Marcelo Claure that outlined a clouded network vision and market strategy that we do not believe offers a clear revenue growth opportunity."
- Next year's EBITDA might be only $5.25B vs. estimates of $7.167B.
- There's a Catch-22: Piecyk sees the stock's value in its spectrum assets, but if Sprint sells those off, what's left isn't a competitive company.
- The carrier recently launched a notes offering to get working capital in the face of its cash burn.
- Updated 6:05 p.m.: Sprint shares are -1.9% after hours.
- Previously: Oppenheimer: Sprint will be forced to make sales (Feb. 18 2015)