Pali Research Upgrades MetroPCS (PCS) to Neutral; Valuation Call
PCS Hot Sheet
Rating Summary:12 Buy, 14 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Pali Research upgrades MetroPCS (NYSE: PCS) from Sell to Neutral.
Pali analyst says, "We are not upgrading to Buy because while Q2 results were poor, the stock and consensus estimates might not yet reflect our expectation of increased competition over the next 18 months. On a pure value basis, declining EBITDA does not justify a higher valuation multiple...We lowered our 2010 EBITDA estimate to $916 million from $1.0 billion and lowered our 2011 EBITDA estimate to less than $800 million from $894 million...We think its best to move to the sideline to see if the 2010 consensus EBITDA of $1.4 billion falls closer to our estimate that was $1.0 billion before Q2 and which we are now lowering to $916 million. We have been surprised that the consensus estimate didn't really move following the launch of Straight Talk two months ago."
To see more analyst ratings on PCS Click Here.
MetroPCS Communications, Inc., a wireless telecommunications carrier, offers wireless broadband mobile services in the United States.
Pali analyst says, "We are not upgrading to Buy because while Q2 results were poor, the stock and consensus estimates might not yet reflect our expectation of increased competition over the next 18 months. On a pure value basis, declining EBITDA does not justify a higher valuation multiple...We lowered our 2010 EBITDA estimate to $916 million from $1.0 billion and lowered our 2011 EBITDA estimate to less than $800 million from $894 million...We think its best to move to the sideline to see if the 2010 consensus EBITDA of $1.4 billion falls closer to our estimate that was $1.0 billion before Q2 and which we are now lowering to $916 million. We have been surprised that the consensus estimate didn't really move following the launch of Straight Talk two months ago."
To see more analyst ratings on PCS Click Here.
MetroPCS Communications, Inc., a wireless telecommunications carrier, offers wireless broadband mobile services in the United States.
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