UBS Warburg and Lehman Bros. lowered full-year estimates for Spri...
UBS Warburg and Lehman Bros. lowered full-year estimates for Sprint’s wireline operations, based on first-quarter results (CD April 18 p8) that were below expectations. UBS Warburg analyst Linda Meltzer said firm lowered 2001 earnings per share estimate to $1.30…
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from $1.55, “assuming continued softness” in 2nd quarter. UBS Warburg continued “buy” rating but fine-tuned price target to $35 from $40. Lehman Bros. lowered 2001 earnings per share estimate to $1.30 from earlier $1.50 and 2nd-quarter forecast to 32 cents from 38 cents. In report by analyst Blake Bath, Lehman adjusted full-year revenue growth forecast to 0.5% from 3.5% “driven almost entirely by a reduction in our full-year data/IP forecast from 24.5% growth to 13.1%.” Investment firm said “most feasible” way for Sprint to penetrate hosting market would be to acquire hosting assets. Lehman Bros. retained “buy” rating as well as $40 price target. Long distance business remains “challenging,” Lehman report said, but Sprint’s “local assets provide valuation support in $20-$23 range” per share, giving Sprint “strong price support.”