Citigroup has published a research report on Sprint Nextel S after the company reported solid 3Q results and provided additional 4Q guidance.
In the report, Citigroup writes, "Sprint updated its guidance for potential debt issuance to a range of $5-7 bil., including $1-3 bil. from vendor financing, which partly relates to the company's objective to maintain a higher cash-on-hand balance of $2 bil. throughout the next few years vs. our prior estimate of $500 mil. While Sprint's near-term cash flow burn & fundraising needs exceeds our prior
estimates, we expect S to issue debt in the near-term and see it as poised to improve returns by restructuring its network operations & improving marketing efficiency."
Citigroup maintains its Buy rating and $6 price target on Sprint Nextel, which is currently trading down $0.12 from yesterday's $2.70 closing price.
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