Boston, MA 09/12/2014 (wallstreetpr) – Sprint Corporation (NYSE:S) has come a long way, and it is now poised to outperform, analysts at Cowen cited that and Sprint’s CEO promised it. The company seeks to bring back unlimited data plan as part of a broad scheme to increase subscribers and beat competition. The company will also look into its costs and assets to see what needs to be retained and what needs to be jettisoned.
The $25.9 billion carrier was upgraded by analysts at Cowen Group (COWN). The analysts raised their view on the stock to “outperform” from “market-perform” in the previous note. They also issued target price of $8 on the stock, which suggests a healthy uptick potential from the prevailing price of about $6.95. According to Cowen, Sprint reveals attractive growth opportunities that can be seen in areas such as pricing, network upgrade and sound management. Those developments have favorable risk/reward potential and could push the stock up more than their target price of $8.
New iPhones deal
Sprint Corporation (NYSE:S)’s recent announcement about new iPhones offering also sounds as a great strategy that the analysts cited as having potential positive bearing on earnings and stock price. Sprint said it would allow its customers to get a new iPhone device every two years through a $20 per month plan. Sprint’s CEO, Marcelo Claure, revealed that cost-cutting and competitive pricing were some other strategies that they seek to employ to help them grow.
Claure further stated that they have already realized some progress for the short period he has been at the helm at Sprint Corporation (NYSE:S). However, there is still room for the carrier to do more, which include more advertising while eliminating confusing plans that might hurt their progress into becoming best value in wireless.
Change of guard
Sprint Corporation (NYSE:S) is owned 80% by SoftBank and it recently dropped its pursuit for rival T-Mobile US (NYSE:TMUS) in what could have seen about $32 billion changing hands. The company also made changes at its top management whereby Dan Hesse stepped down from the CEO position and Claure replaced him.