NEW YORK ( TheStreet) -- Sprint Corporation ( S) was falling 3% to $9.68 on Thursday after Deutsche Bank downgraded the stock to hold from buy.
The analysts, led by Brett Feldman, actually increased the target price for the stock to $9.25 from $8.50, which represents about 6% worth of downside from Wednesday's close, because Sprint decided not to participate in January's H block spectrum auction. Deutsche had previously expected the company to spend $3 billion in the auction. The analysts still downgraded Sprint with the following explanation:
"...We believe the shares now reflect both a potential ramp in EBITDA in '14-'15 from Network Vision cost savings and some of the potential upside to longer term numbers. In our view, it is too soon to increase estimates, especially in light of the shifting competitive environment, or to pay for potential synergies from a deal with TMUS, which Sprint may not pursue near term and which would likely face stiff pushback from the regulators if it does."
Sprint has a one-year high of $11.47 and a one-year low of $5.61.