Monday, December 20, 2010

Goldman (NYSE:GS) Raises EPS for Sprint (NYSE:S) on More Clarity on Costs, Savings

Goldman Sachs (NYSE:GS) boosted the EPS and EBITDA estimates for Sprint (NYSE:S) based on more clarity concerning their costs and savings in the relationship to their Network Vision project.

Also cited was their ARPU, which in the short term is slightly higher postpaid.

Goldman raised 2010 EBITDA estimates by 0.2% to $5.61 billion and 2011 was raised 4.3% to $5.56 billion. 2010 EPS estimates dropped from $1.17 to $1.13, 2011 they increased from $0.59 to $0.66 and 2012 up from $0.26 to $0.30.

They maintain their "Buy" rating on Sprint, which was trading at $4.24, up $0.08, or 1.80 percent as of 11:14 AM EST. Goldman has price target of $6 on them.

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