UBS Maintains a 'Neutral' on MetroPCS (PCS); Adjusting Estimates

July 3, 2012 1:07 PM EDT Send to a Friend
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Price: $11.84 --0%

Rating Summary:
    15 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 24 | Down: 14 | New: 40
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UBS maintains a 'Neutral' on MetroPCS (NYSE: PCS) price target of $6.50 (from $7.50).

Analyst, John C. Hodulik, said, "We are updating our MetroPCS model to reflect a relative lack of promotions in 2Q, which we believe compounded typical seasonal weakness...We now expect 2Q net subscriber losses of 150K (prev. -50K) and gross adds of 922K (previously 1.08M), driven by churn of 3.8% (prev. 4.0%). We forecast ARPU growth of 0.3% to $40.61 (prev. $40.69) along with CPGA of $251 (prev. $235) and CPU of $20.20 (prev. $20.18). This generates estimated service revenue of $1.16B (prev. $1.17B), total revenue of $1.25B (prev. $1.27B), and adjusted EBITDA of $324M (prev. $305M), equating to margins of 27.9% (prev. 26.1%)."

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 $6.36 yesterday.


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