Deutsche Bank Reiterates a 'Buy/Top Pick' on MetroPCS (PCS); Increasing 4Q10 Net Adds on Positive Channel Checks

January 4, 2011 7:22 AM EST Send to a Friend
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Price: $11.84 --0%

Rating Summary:
    15 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 43 | New: 52
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Deutsche Bank reiterates a 'Buy/Top Pick' on MetroPCS (NYSE: PCS), raises PT from $15 to $20.

Deutsche analyst says, "We have 2 positive takeaways from our 4Q channel checks for MetroPCS, which covered over 80 stores across the company's 14 major markets. (1) Demand remains strong for PCS' prepaid services and we are increasing our 4Q net add estimate to 425k (consensus 393k) from 350k. (2) Rate plan mix continues to improve, which implies that our 2011 ARPU and EBITDA estimates may be conservative."

"We also contacted nearly 60 channels selling other prepaid brands such as Boost and Virgin (Sprint (NYSE: S)), Straight Talk (TracFone), and Cricket (Leap Wireless (Nasdaq: LEAP)). Our key takeaway is that Sprint saw strong prepaid demand during 4Q, especially for Boost, which suggests potential upside to our prepaid net add est of 650k."

For more ratings news on MetroPCS click here and for the rating history of MetroPCS click here.

Shares of MetroPCS closed at $13.07 yesterday.


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