Nomura Securities Maintains a 'Neutral' on MetroPCS (PCS); Estimates Lowers For All

August 22, 2012 8:50 AM EDT Send to a Friend
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Price: $11.84 --0%

Rating Summary:
    15 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

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    Up: 24 | Down: 27 | New: 14
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Nomura Securities maintains a 'Neutral' on MetroPCS (NYSE: PCS) price target of $6.00.

Analyst, Mike McCormack, said, "MetroPCS announced that its “LTE for All” promotion will be launching later this week, offering an Android LTE smartphone for $99, after a $50 mail in rebate, with a promotional $55 unlimited voice, data and text plan that is usually priced at $70. While this plan refresh has been expected since at least 1Q, we had anticipated a 4Q launch of the promotion instead of a late 3Q launch during back-to-school season. We are forecasting an incremental month of higher upgrades and gross additions leading to improved subscriber losses of (100k) and lower Adj. EBITDA service margin of 34.1% for 3Q vs. our prior losses of (172k) and margin of 38.6%, respectively. Our 2012 estimate for EBITDA falls to $1.38bn from $1.44bn, implying a service margin of 30%. FY 12E EPS falls from $0.87 to $0.78 and FY 13E EPS from $0.75 to $0.78."

For an analyst ratings summary and ratings history on MetroPCS click here. For more ratings news on MetroPCS click here.

Shares of MetroPCS closed at $10.15 yesterday.


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