J.P. Morgan Maintains Overweight on Sprint Nextel

J.P. Morgan is out with its report today on Sprint Nextel (NYSE: S), maintaining Overweight.

In a note to clients, J.P. Morgan writes, "We see Sprint as the stock in our universe with the largest potential upside due to its continued operational turnaround and opportunity to expand margins from the current industry-low level, and we rate the stock Overweight. While we expect that margin expansion to happen in 2012-13 rather than 2011, the company may be able to bring that forward. We also expect solid cash flow generation, which should go to paying down debt or possibly further investment in the business or other strategic options."

J.P. Morgan maintains a $7 PT on S.

Shares of S closed Thursday at $5.93, up 1.72% from Wednesday's close.