J.P. Morgan Chase & Co. has a Neutral rating and a $6 price target on shares of Clearwire CLWR after it reported earnings.
In a note to clients, J.P. Morgan writes, "Clearwire reported weak 4Q10 and strategic questions remain. The company reported
lower than expected retail adds, higher churn, lower service revenue and a larger than expected adj. EBITDA loss of $497m. Wholesale adds and retail ARPU came in higher than expected. In addition to weak results, Clearwire's main strategic issues
remain outstanding. The company expects to make a decision on a spectrum sale by the end of 2Q11. While no final resolution has been reached with Sprint on wholesale pricing, management does expect a deal imminently. CLWR reiterated its commitment to retail, but delayed the launch of smartphones to conserve cash. We maintain our Neutral rating given outstanding strategic issues and impending cash needs."
Shares of CLWR lost 17 cents yesterday to close at $5.21, a loss of 3.1%.
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Posted In: Analyst ColorPrice TargetAnalyst RatingsJ.P. Morgan Chase & Co.Telecommunication ServicesWireless Telecommunication Services
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