JANCO Partners Starts Leap Wireless (LEAP) at Buy

December 28, 2012 8:27 AM EST Send to a Friend
Get Alerts LEAP Hot Sheet
Price: $17.52 --0%

Rating Summary:
    4 Buy, 22 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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JANCO Partners initiated coverage on Leap Wireless (NASDAQ: LEAP) with a Long Term Buy rating. The firm is calling LEAP an attractive value opportunity, as they expect further industry consolidation beyond the T-Mobile/MetroPCS, Softbank/Sprint, Sprint/Clearwire transactions.

Different from Clearwire and Sprint JANCO believes there are a number of potential buyers for Leap Wireless. "We believe it is small enough that very large carriers might consider it as a "tuck in" acquisition."

Beyond takeover potential, JANCO believes that over a several year period of time Leap can transition to being an MVNO.

Fundamentally, JANCO believes the worst is behind the company although financial results may not turn as quickly as management suggests. The firm's forecast is are materially lower than published consensus.

Using technical analysis the firm define an upside target of $16 per share.

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 $6.60 yesterday.


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