Nomura Securities Maintains a 'Neutral' on MetroPCS (PCS); Cutting Estimates as Results Disappoint
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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 $6.00.
Analyst, Mike McCormack, said, "MetroPCS results disappointed, and included strong parallels to peer Leap Wireless’ (Nasdaq: LEAP) results, affirming our cautious stance on the sector. Metro’s 1Q results delivered the rare combination of both weak net adds and softer EBITDA. In our view, the investment case for PCS shares hinges on expectations for the company’s continued ability to generate FCF, and we expect today’s results will call that outlook into question. Based on our new estimates PCS shares are valued at 3.4x 2013 EV/EBITDA and 14.9x 2013 EV/UFCF, and 15x 2013 P/FCF. We would look for more opportunistic entry points, which will likely emerge throughout the coming months. 2012E/2013E EPS from $0.84/$1.17 to $0.55/$0.67."
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 $7.08 yesterday.
Analyst, Mike McCormack, said, "MetroPCS results disappointed, and included strong parallels to peer Leap Wireless’ (Nasdaq: LEAP) results, affirming our cautious stance on the sector. Metro’s 1Q results delivered the rare combination of both weak net adds and softer EBITDA. In our view, the investment case for PCS shares hinges on expectations for the company’s continued ability to generate FCF, and we expect today’s results will call that outlook into question. Based on our new estimates PCS shares are valued at 3.4x 2013 EV/EBITDA and 14.9x 2013 EV/UFCF, and 15x 2013 P/FCF. We would look for more opportunistic entry points, which will likely emerge throughout the coming months. 2012E/2013E EPS from $0.84/$1.17 to $0.55/$0.67."
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 $7.08 yesterday.
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