Markets & Finance

Bear Stearns Raises Opinion on UbiquiTel


Bear Stearns raised its opinion on UbiquiTel (UPCS) to outperform from peer perform Tuesday, citing valuation disparity with Alamosa Holdings (APCS

.)

Both companies sell wireless services under the Sprint brand name. Analyst Phil Cusick said that after a recent drop in UbiquiTel shares, the company is now at 7.8 times his 2006 earnings per share estimate while Alamosa trades at 8.8 times. Cusick says UbiquiTel has $89 million in cash, which he believes the company has held on to in case of a deal with Sprint. If a Sprint deal does not involve Integrated Digital Enhanced Network technology asset acquisitions or the company pays with equity instead, Cusick expects to see some of UbiquiTel's cash deployed for stock buybacks. He set a $10 year-end target and expects a new Sprint deal to provide additional upside.


The Good Business Issue
LIMITED-TIME OFFER SUBSCRIBE NOW

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

 
blog comments powered by Disqus