Sprint (S) Stock Rating Raised at Pacific Crest
NEW YORK (TheStreet) -- Sprint's (S) - Get Reportstock rating was upgraded to "sector weight" from "underweight" at Pacific Crest on Monday morning.
The rating increase is a result of better than expected "churn, margins and postpaid phone additions" in the company's fiscal 2016 first quarter results on Monday, according to the analyst note.
Sprint reported postpaid phone additions of 173,000 and prepaid phone losses of 331,000, compared to consensus estimates of 80,000 and (284,000), respectively.
The Overland Park, KS-based phone company also improved its free cash flow, reporting FCF of $466 million compared to Pacific Crest's estimates of $354 million.
While Sprint reported positive changes this quarter, the firm says it continues to recommend owning T-Mobile (TMUS) above Sprint because Sprint "remains a difficult stock to short due to its low float."
Shares of Sprint are down by 1.19% to $5.83 in early-morning trading on Tuesday,
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