Nomura Securities Maintains a 'Neutral' on MetroPCS (PCS); Pricing Promo Highlight Industry Risk
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Price: $49.82 -0.04%
Rating Summary:
12 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
12 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on MetroPCS (NYSE: PCS) price target of $13.00.
Analyst, Mike McCormack, said, "MetroPCS has launched a new $25-per-month unlimited voice and text messaging promotion ($10 activation fee) vs a previous rate of $40, through the end of June. Even the smallest reduction in ARPU can have a severely damaging impact on EBITDA, as price changes drop directly to profitability. For context, a 2% change in pricing is an approximately 7% risk to EBITDA. Should the pricing environment remain soft, we expect Metro to have difficulty transitioning the subscriber base to better terms, without suffering subscriber attrition to competitors."
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 $8.57 yesterday.
Analyst, Mike McCormack, said, "MetroPCS has launched a new $25-per-month unlimited voice and text messaging promotion ($10 activation fee) vs a previous rate of $40, through the end of June. Even the smallest reduction in ARPU can have a severely damaging impact on EBITDA, as price changes drop directly to profitability. For context, a 2% change in pricing is an approximately 7% risk to EBITDA. Should the pricing environment remain soft, we expect Metro to have difficulty transitioning the subscriber base to better terms, without suffering subscriber attrition to competitors."
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 $8.57 yesterday.
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