TeleNac Surges On New Sprint Contract

In a recent report by Deutsche Bank, TeleNav TNAV announced they have signed a new contract with Sprint S, its largest customer. Under the new terms, Sprint will pay TeleNav a fixed fee over the period of the contract. The contract has been extended until 2012 and Sprint cannot cancel the contract until the middle of 2012. TeleNav reaffirmed their September quarter guidance and issued FY11 guidance below Deutsche Bank estimates. DB remains cautious on TeleNav as it maintains a Hold rating. TeleNav is up 15% in Premarket at $5.78 from a close of $5.06 on Monday