David Evanson and Greg Miller
Forbes.com, Spring, 2012
Canaccord Genuity telecom analyst Greg Miller previewed four companies in his coverage universe reporting on April 25.
Sprint (S : NYSE | HOLD) – Kicking off another transition year – With increased competitive pressures mounting at the same time as the company is attempting its long overdue rebuild of its wireless network (dubbed Network Vision), we do not expect its margin profile to improve in the near future.
Akamai (AKAM : NASDAQ | HOLD) – Mixed signals expected – Despite recent executive sales of stock, many seem to believe the increased competitive pressures for Akamai’s core services have subsided. . . Although nearly impossible to predict quarterly trends accurately, we believe it will be difficult for AKAM to maintain the current level of growth throughout 2012.”
Equinix (EQIX : NASDAQ | BUY)- Solid demand likely to drive Q1/12 results – We continue to believe Equinix remains one of the best positioned data center companies in the market and expect Q1/12 results and commentary to bolster investor confidence in the name and the subsector. We believe the Q1/12 results will justify the 50% move in the stock price so far this year.
Crown Castle (CCI : NYSE | BUY) – Tower tailwinds remain strong – As we expect for the other two tower names, we believe the quarter will be characterized by continued solid demand from its two largest carriers (Verizon and AT&T) coupled with incremental activity from Sprint’s network reconstruction process and soon T-Mobile’s 4G LTE build out.