Opinions
John Zechner
Sprint Nextel
S-N
PARTIAL SELL
Oct 02, 2012
Stock price when the opinion was issued
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Not in the same league as CRWD based on market cap. But closest you can come to a CRWD product. He's not saying it will be an acquisition, but it will have challenges with scale, as everyone's knocking on their door. Buy here around $23, again around $20, and the final third around $18. 12-month price target of $25. Reports August 30. No dividend.
(Analysts’ price target is $25.47)Benefited a lot from the CRWD issue, and probably the closest competitor of CRWD. Its software can do a security fix on data and access right away. Now around $27, 12-month price target of $29.90. Getting up there, but he'd still buy 1/3 here, add again around $26.25, final 1/3 around $25.
EPS of 4c beat estimates of 1.2c; revenue of $225M beat estimates of $222M. Still, F2026 forecast was lowered: to sales $1.01B from estimates $1.03B. Margins to 78.5% from 79.3%. Q1 sales to $228M from $235.6M estimated. Most brokers re-iterated their ratings. It was a decent Q4, but a less-than-ideal forecast is always going to hit a stock trading at 105X earnings. We do not think it is a time for panic, and the company will see its first proft this fiscal year (ends January 31). But in this market, we think buyers can wait: we would give it a HOLD.
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Chart looks good. Has had a great recovery so far this year. Some of the telcos have been a good haven when economically sensitive stocks were out of favour. Doesn’t know, valuation wise, that there is that much upside left from here. If you own, he would be inclined to take a little money off the table.