Jefferies Slashes Price Target on Leap Wireless (LEAP)

May 25, 2012 9:08 AM EDT
Get Alerts LEAP Hot Sheet
Price: $17.52 --0%

Rating Summary:
    4 Buy, 22 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 10 | Down: 16 | New: 50
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Jefferies slashed its price target on Hold-rated Leap Wireless (NASDAQ: LEAP) from $10 to $6 citing pre-paid competition.

"As the post-paid market slows, we believe the Big-Four carriers are increasingly focusing on the pre-paid market to drive growth," the firm said.

Also, APRU growth will likely slow. "ARPU growth at Leap is likely to slow as smartphone penetration approaches the smartphone sales rate. As such, we believe Leap's market opportunity and growth potential may be limited."

The firm adjusted FY12 EPS from ($3.29) to ($3.24) and FY13 from ($1.50) to ($1.30).

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 $5.23 yesterday.

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