Goldman Sachs Lowers PTs on Leap (LEAP) and MetroPCS (PCS), Sees Shares Moving Lower
Tweet Send to a FriendGet Alerts LEAP Hot Sheet
Price: $5.76 -0.17%
Rating Summary:
6 Buy, 14 Hold, 8 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
6 Buy, 14 Hold, 8 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade LEAP Now!
Goldman Sachs lowered their price targets on Neutral-rated Leap Wireless (NASDAQ: LEAP) from $9.50 to $8.50 and MetroPCS (NYSE: PCS) from $8.50 to $7.50.
The firm said they are more negative near-term due to expectations for a challenging fundamental trajectory in 2Q12 results. "Competition from national carriers and MVNOs continues to impact share gains and profitability, while a lack of spectrum/scale and a tough macro backdrop have been additional headwinds in recent quarters," the firm notes.
On PCS, the firm said this could be the first time it reports negative volumes and sees a sequential decline in service revenues.
Goldman expects both stocks to move lower over the near-term before more positive catalysts surface later this year. The return to positive volumes in 4Q the next fundamental catalyst.
For an analyst ratings summary and ratings history on Leap Wireless click here. For more ratings news on Leap Wireless click here.
Shares of Leap Wireless closed at $6.01 yesterday, with a 52 week range of $4.68-$17.04.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm said they are more negative near-term due to expectations for a challenging fundamental trajectory in 2Q12 results. "Competition from national carriers and MVNOs continues to impact share gains and profitability, while a lack of spectrum/scale and a tough macro backdrop have been additional headwinds in recent quarters," the firm notes.
On PCS, the firm said this could be the first time it reports negative volumes and sees a sequential decline in service revenues.
Goldman expects both stocks to move lower over the near-term before more positive catalysts surface later this year. The return to positive volumes in 4Q the next fundamental catalyst.
For an analyst ratings summary and ratings history on Leap Wireless click here. For more ratings news on Leap Wireless click here.
Shares of Leap Wireless closed at $6.01 yesterday, with a 52 week range of $4.68-$17.04.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Topeka Capital Upgrades Pacific Sunwear of California (PSUN) to Buy
- Toll Bros. (TOL) Q2 Solid but Not Much Better Than Peers
- Compuware (CPWR) Estimates Trimmed, PT Raised at Jefferies
Create E-mail Alert Related Categories
Analyst Comments, Analyst PT ChangeComments
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
Great Call Goldman
Anonymous on Jun 26, 2012 02:39 PMMark as Spam | Reply to this comment
Lower your ratings, but the PTs are both well ahead of the current NAVs. Smoke, mirrors and greed. The call seems to be based on each telecom's lack of need for GS's investment banking needs.