3 Telecom Stocks Seeing Action: T-Mobile’s Open to Tie-Ins, Sprint Gets a Downgrade, and Verizon’s Hefty iPhone Tab
T-Mobile US (NYSE:TMUS): CEO John Legere said the company is open to relationships with Dish Network (NASDAQ:DISH) and Sprint (NYSE:S). ”When I look at the medium to long term, I’m intrigued by Dish’s vision,” Legere told CNET. Any deal with Sprint, which will be quite busy in the near term while contending with Clearwire (NASDAQ:CLWR) and merging with SoftBank, wouldn’t be a near-term proposition, Legere indicated.
Sprint (NYSE:S): Citigroup has downgraded Sprint to Neutral from Buy, citing valuation and expectations for rising debt levels due to wireless acquisitions and accelerated investments, although it raised its price target for shares to $7.50 from $6.50 and points out that shares of Sprint were upgraded this morning at Deutsche Bank.
Verizon Wireless (NYSE:VZ): Former Bernstein analyst Craig Moffett believes that Verizon is obligated to purchase a substantial $23.5 billion worth of iPhones this year from Apple (NASDAQ:AAPL) after a review of the company’s SEC filings. That number is about twice the amount that it bought in 2012, and Moffett thinks that Verizon — which he believes has fallen short of its iPhone purchase commitments each year since it began selling the phone in 2011 — could end up owing Apple $12 billion to $14 billion at year’s end.