Positive Postpaid Signs For Sprint Nextel, JP Morgan Maintains Overweight

JP Morgan has published a research report on Sprint Nextel (NYSE: S) after the company reported positive postpaid signs during its 4Q and margins that were better than anticipated.

In the report, JP Morgan writes "Revs of $8.3b were better than our $8.1b, while consolidated EBITDA of $1.315b was better than our $1.233b. Capex was $608m, up from last quarter's $462m but below our $616m. Postpaid net adds of 58k were better than our 25k and consensus at 7k, and prepaid adds of 646k were above our 450k and consensus at 512k. Sprint expects to continue to add postpaid subs in 2011 (JPMe 225k) vs a loss of 855k postpaid in 2010, and add more total adds in 2011 than the 783k in 2010 (JPMe 1.475m). S guided to 2011 Capex of ~$3b (JPMe $2.8b)."

JP Morgan maintains its Overweight rating on Sprint Nextel, which closed yesterday at $4.35.