Clearwire: RBC Cuts Rating, Target, Estimates

Clearwire (CLWR) shares are slipping today after RBC Capital’s Jonathan Atkin cut his rating on the stock to Sector Perform from Outperform. His target on the stock drops to $9 from $15. Atkin now sees the company producing an EBITDA loss for 2009 of $474.9 million, worse than hits previous forecast of $455.9 million. He cut his ‘09 revenue forecast to $375 million, from $401 million. (You have to admit, not too many companies have negative cash flow that exceeds revenue. That takes serious effort.) Atkin says he does not expect any catalysts for the stock until wide-scale WiMax launches begin in mid-2009 or later. CLWR today is down 17 cents, or 2.5%, to $6.65. (link)