Sprint Shares Fall 13%, J.P. Morgan Cuts Price Target

Shares of Sprint fell 13% in premarket trade after the mobile carrier reported its second straight quarterly loss and sales that missed expectations. The stock was met with a wave of negative analyst notes on Tuesday, including from J.P. Morgan Chase, which cut its price target on Sprint to $5 from $6. Pacific Crest Securities said it now sees more risk than benefits in holding shares of Sprint. "We continue to avoid," Pacific Crest analyst Michael Bowen said. Sprint late Monday lowered its fiscal 2014 EBITDA guidance by nearly $1 billion and said it would axe another 2,000 jobs. Sprint's shares were down 12.9% to $5.40 just before the market opened on Tuesday.