Sprint (S) shares are trading higher today after Wells Fargo analyst Jennifer Frizsche lifted her rating on the telco’s stock to Outperform from Market Perform.
“Based on recent channel checks, we believe Sprint is seeing a positive shift toward stability in both gross adds and churn,” she writes, adding that the company is getting traction with consumers.
The analyst sees now sees the company losing 83 cents a share this year – actually a penny worse than her old estimates – but for 2011 she now sees a loss of 58 cents, up from a loss of 72 cents previously. Fritsche lifts her valuation range on the stock to a range of $5.50 to $5.75, from a previous range of $3 to $3.80.
The bottom line, she writes, is that any improvement in subscriber growth metrics should boost the stock.
S today is up 15 cents, or 3.7%, to $4.23.
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