Wells Fargo Adjusts Estimates on Leap Wireless (LEAP) Following December Channel Checks

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LEAP Hot Sheet

Rating Summary:
6 Buy, 14 Hold, 2 Sell

Rating Trend: Down

Down

Today's Overall Ratings:
Up: 22 | Down: 8 | New: 36

Wells Fargo maintains a 'Market Perform' on Leap Wireless (NASDAQ: LEAP), but lowers its price target range from $9.50-10.50 to $9.00-9.50.

Wells analyst says, "LEAP’s voice gross adds should be helped in Q4 by the additional distribution points added in its MVNO/out of region strategy. Specifically, LEAP expanded into 800 Best Buys (NYSE: BBY) in late Q3 and planned to add 5,500 additional dealers by year-end 2011."

"We are adjusting our Q4 net and gross add estimates to 148,000 and 804,000 from 126,000 and 765,000 respectively. These are consolidated net adds and include both voice and broadband subs. We are lowering our Q4 EBITDA estimate from $140MM to $133.1MM. Our new 2011 and 2012 EBITDA estimates are $560.6MM and $658.1MM, respectively. Our 2011E EBITDA per share falls to $7.32 from $7.41, while our 2012 estimate rises to $8.52 from $8.48."

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 $8.49 yesterday, with a 52 week range of $5.50-$17.66.

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