Solid 4Q For Sprint Nextel Cites JP Morgan

JP Morgan has published a report expecting Sprint Nextel (NYSE: S) to report a positive postpaid quarter.

The report positively notes "4Q10 net adds for Sprint's postpaid business, with CDMA porting trends coming in positive against other carriers. We maintain our 25k adds est. (vs. Street at 7k) but could see some upside." Also it expects a 450k net add estimate for the prepaid user base. Further the reports looks for a favorable outlook for 2011 stating "We expect management will guide to continued subscriber improvements in 2011 – though possibly not explicitly positive for every quarter."

Sprint Nextel is holding an event Monday which is highly speculated to announce a new 4G tablet.

JP Morgan maintained its Overweight rating and $7.00 price target.

Shares of Sprint Nextel closed Friday at $4.40