Why Sprint (S) Was Upgraded

Story updated at 9:45 a.m. to reflect market changes.

NEW YORK (TheStreet) -- Sprint (S) was upgraded to "buy" from "hold" by Deutsche Bank Wednesday.

Sprint gained 2.2% to $8.07 in morning trading.

The bank set a price target of $9.25 for the wireless carrier. Analysts Brett Feldman, Jiorden Sanchez, and Jonathan Epstein said the upgrade is due to a recent stock pullback. The analysts also cite two "key themes" for the carrier which include "(1) a significant spectrum advantage and (2) an outlook for material EBITDA growth during the next 2 years."

The upgrade comes one day after Sprint announced a surprising net gain of subscribers in the fourth quarter of 2013, and a lower-than-expected loss.

S ChartS data by YCharts

More from Markets

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Dow and S&P 500 Finish Higher Amid Strong Corporate Earnings

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk

Veteran Foreign Affairs Expert Ian Bremmer Reveals How to Price Political Risk