Nomura Securities Maintains a 'Neutral' on MetroPCS (PCS); Estimates Lowers For All
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Price: $11.84 --0%
Rating Summary:
15 Buy, 12 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
Rating Summary:
15 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 8
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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, with a 52 week range of $5.53-$12.17.
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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, with a 52 week range of $5.53-$12.17.
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