Why Sprint's Stock Could Triple, Peers 'Strong Buys'
By Takeover Analyst:In the past, I have argued that Sprint (S) was flirting with bankruptcy and was better off dead than alive. For the sake of showing balance, I will now present a bullish thesis on the company. While the company may be bleeding more than a billion on the bottom-line, free cash flow trends would be stronger than many expect if operating metrics held steady. In this article, I will run you through my DCF model on Sprint and then triangulate the result with a review of the fundamentals against Verizon (VZ) and AT&T (T).First, let's begin with an assumption about the top-line. Sprint finished FY2011 with $33.7B in revenue, which represented a 3.4% gain off of the preceding year. I model 6.3% per annum growth over the next half decade or so.Moving onto the cost-side of the equation, there are several items to consider: operating expenses, capital expenditures,Complete Story »
- Original article
- Login or register to post comments
