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Wells Fargo: Sprint CFO change feeds spending narrative

Published 01/04/2018, 11:01 AM
© Reuters.  Wells Fargo: Sprint CFO change feeds spending narrative
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  • Sprint (NYSE:S) is off 4.4% since announcing a changeover in its chief financial officer this morning, with former Altice CEO Michel Combes taking over for Tarek Robbiati and signaling a "new phase of transformation."
  • Wells Fargo (NYSE:WFC)'s Jennifer Fritzsche isn't surprised by the downturn on the news: "Unfortunately, we believe this feeds the narrative of concern that S needs to spend on network and continue to aggressively cut costs," she writes.
  • Robbiati did as asked in lowering cost of capital, but Combes' expertise (Sprint calls hime a "turnaround strategist") will be useful at this point in Sprint's evolution, she says. Key questions will be be "What is Combes' view on financing (and funding of S's capx initiatives) and continued ability to cut costs."
  • Now read: Danger Zone: Value Destroying Buybacks


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