Canaccord Genuity Starts MetroPCS (PCS) at Buy; Still Producing Growth Despite Challenges

March 27, 2012 9:48 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

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Canaccord Genuity initiates coverage on MetroPCS (NYSE: PCS) with a Buy. PT $16.00.

Analyst, Greg Miller, said, "Despite challenging operating conditions, we believe the company should continue to produce double-digit growth, 30% EBTIDA margins with a high single-digit FCF yield. We believe the recent near sale to Sprint (NYSE: S) highlights value and difficulty in US wireless market, and we believe other bidders, such as T-Mobile USA, could create value through an acquisition. We expect Q1/11 to be challenging due in part to promotions (which will dent margins) as well as potential delays in federal tax returns. However, priced at 4.2x 2013E EBITDA, we find the risk/reward warrants a BUY."

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 $9.78 yesterday.


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