Softbank's reported offer would represent, at maximum, a $6 share price, according to Evercore Partners analysts, which would come at a single digit premium to Sprint's 2012 stock highs. Meanwhile, Jonathan Schildkraut of Evercore writes in a research note to clients that Softbank's deal would do little to alter Sprint's fundamental challenges, except to give it a deep pocketed financial backer.
While reports range greatly on Softbank's share stake proposal, Craig Moffett of Bernstein Reseach notes the expected takeout offer gives Sprint little credit for its in-process wireless network upgrade. "
On the heels of MetroPCS and T-Mobile's announced merger earlier in October, Citigroup analyst Michael Rollins added Sprint to the bank's "Most preferred List" of stocks, advocating that investors consider a pair trade where it outperforms MetroPCS through year-end.
Citigroup's bullishness on Sprint is predicated on expected improvements in the company's operating margins and its eventual success in building out a viable nationwide network."
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