Collins Stewart Reiterates Neutral Rating on Sprint (S)

Collins Stewart is out with a research report this morning, where it reiterates its Neutral Rating on Sprint Nextel Corp. S; it has a $4.50 price target on the stock. The CS analysts said that they continue to stay on the sidelines and wait for demonstrated financial success that operations are improving. Over the past 15 years, investors have all too often accepted the bullish argument at face value, only to be repeatedly disappointed with subsequent share price performance. They noted that Sprint's 4G exclusivity is now a mute point with Verizon's 700 Mhz based 4G launch next month. As for valuation, the analysts noted, “Assuming integration with Clearwire, a likely event, the stock is one of the most expensive in the group valued at 7.5x 2011 estimated EBITDA.”