CLWR’s Subscriber Growth Expected to Accelerate
Analyst Michael Nelson of Soleil Securities Group upgrades Clearwire Corp (NASDAQ: CLWR)(FREE stock trend analysis) from "sell" to "buy," while reducing his estimates for the company. The target price for CLWR has been raised from $4 to $8.
Clearwire’s stock is expected to rally heading into the 4Q09 results, driven by an anticipated acceleration in subscriber growth. The company is benefiting from the contribution from its wholesale partners and expanded footprint, the analyst says. CLWR has announced that it has secured an additional funding of $2.9 billion and used some of this capital to refinance existing debts.
Despite Clearwire’s increased cash burn, investors would look into the company’s potential to generate strong top-line subscriber growth. Soleil Securities has reduced its EPS estimates for 2010 from -$1.29 to -$1.85.
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Posted-In: Michael Nelson Soleil Securities GroupAnalyst Color Upgrades Price Target Analyst Ratings