Sanford C. Bernstein has downgraded Sprint Nextel to underperform from market perform, citing concerns it won’t sell enough iPhones to pay for its “punishing” commitment to Apple. Worse, from Sprint’s perspective, is that there’s a strong chance Sprint may have to declare bankruptcy at some point, Bernstein analyst Craig Moffett said in a research note. Shares in the company dropped by 4.5 percent after its release. Moffett took pains to say he was not predicting Sprint would declare bankruptcy — rather, that it is a legitimate risk facing the company and one that is growing.
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iPhone Gamble May Send Sprint Into Financial Shock
Posted by: Erika Morphy March 19, 2012 02:58 PMSanford C. Bernstein has downgraded Sprint Nextel to underperform from market perform, citing concerns it won’t sell enough iPhones to pay for its “punishing” commitment to Apple. Worse, from Sprint’s perspective, is that there’s a strong chance Sprint may have to declare bankruptcy at some point, Bernstein analyst Craig Moffett said in a research note. Shares in the company dropped by 4.5 percent after its release. Moffett took pains to say he was not predicting Sprint would declare bankruptcy — rather, that it is a legitimate risk facing the company and one that is growing.