After a lot of difficult financial news in recent months, things might be turning around for Sprint. One month after releasing the Palm Pre to mostly favorable reviews, Auriga USA analyst Chandan Sarkar has raised his rating on Sprint from “hold” to “buy.” Sarkar’s new price target is $7, up from $5.50.
Positive sales numbers and reviews for the Pre aren’t the only reason for the ratings change. Sarkar is high on the future of Boost Mobile, Sprint’s prepaid arm. He also believes the number of subscriber losses in Sprint’s postpaid business will slow down in the second half of the year. Sprint’s stock price might be down 20 percent in recent weeks, but Sarkar says with all of the positive things happening from the telco giant, this could be a good opportunity to invest.
The company’s stock price was up slightly (less than 2 percent) in afternoon trading, at $4.40 per share.