Shares of Sprint Respond to Cowen Downgrade

Cowen analyst Colby Synesael lowered Sprint's (NYSE: S) rating from Outperform to Market Perform and raised the price target from $7.50 to $8.25.

Synesael noted that Sprint appears to be fairly valued with additional near-term upside unlikely. The analyst added that SoftBank won't likely purchase the remaining 20% of Sprint shares and sees uncertainties around the potential Dish Network Corp. (NASDAQ: DISH) partnership.

In a separate note, Synesael commented that the Sprint bid for T-Mobile US, Inc. (NYSE: TMUS) will not likely get DOJ and FCC approval without significant divestitures.

The analyst remarked that counterbid for T-Mobile by Dish Network would not be surprising and is more likely to gain approval.

Sprint closed at $10.75 on Tuesday. Shares of Sprint fell 2.1% in pre-market as a response to Cowen's note. Shares have traded as low as $10.25 today, down 4.878%.