Analyst Lowers Sprint Nextel Performance Expectations

1:38 am on January 9, 2006 | Category: Business, Corporate, Wireless

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An analyst at Standard & Poor’s Equity Research has recently downgraded the rating of Sprint Nextel shares from “buy” to “hold”.

“We believe achieving normalized sales growth above 10% will be challenging, as the U.S. wireless services market is maturing, unless the company pursues lower ARPU (monthly revenue per subscriber) for prepaid users with greater effort,” wrote analyst, Kenneth Leon in a research note.

Previous earnings estimates for 2005 and 2006 stood at $1.50 and $1.75 per share, but these have been reduced to $1.40 and $1.60, respectively. The 12-month pricing target for Sprint Nextel has also been lowered from $31 to $26.

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    Edited by Jeremy Maddock