Clearwire (CLWR) stock is getting a nice boost this morning on bullish comments from Jefferies & Co. The brokerage firm today picked up coverage of the 4G network provider with a Buy rating.
Clearwire, which is majority-owned by Sprint (S), runs the 4G WiMax network. WiMax is set to gain attention this summer, when Sprint launches the first 4G-ready handset.� Clearwire offers 4G service both directly and through partnerships with Sprint, Comcast (CMCSA), Time Warner Cable (TWC) and Bright House Networks.
In the upgrade today, Jefferies’ Anupam Palit notes that the partnership arrangement has exposed the stock to concerns that the equity partners will benefit while leaving the risk of network buildout to Clearwire shareholders.� “However, we believe that with the WiMAX deployment reaching critical mass in 2010, the partnership network proving to be a solid source of financing, and the wholesale story unfolding, the interests of Clearwire’s partners and the company itself are effectively aligned.”
Palit sets a price target of $9 for the stock.
Shares of Clearwire are up 4.5%, or 32 cents, today to $7.38.
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