Deutsche Bank Downgrades MetroPCS (PCS) to Hold
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Price: $49.95 +0.08%
Rating Summary:
12 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 12
Rating Summary:
12 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 10 | New: 12
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On Monday, Deutsche Bank downgraded MetroPCS (NYSE: PCS) from Buy to Hold with a price target of $11.00 (from $15.00).
"Our more cautious view is based on a belief that PCS is unlikely to accept a competitive bid from another national wireless carrier at a price superior to current trading levels," the firm comments. "We are therefore valuing the company with a base case that it completes its planned merger with T-Mobile (TMUS). While we believe that the combined NewCo can achieve its synergy objectives, we nonetheless see minimal, if any, EBITDA growth during the next 3-5 years (below guidance) due to ongoing struggles at TMUS. We therefore expect valuation to remain compressed and move to the sidelines until visibility improves."
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 $10.59 yesterday.
"Our more cautious view is based on a belief that PCS is unlikely to accept a competitive bid from another national wireless carrier at a price superior to current trading levels," the firm comments. "We are therefore valuing the company with a base case that it completes its planned merger with T-Mobile (TMUS). While we believe that the combined NewCo can achieve its synergy objectives, we nonetheless see minimal, if any, EBITDA growth during the next 3-5 years (below guidance) due to ongoing struggles at TMUS. We therefore expect valuation to remain compressed and move to the sidelines until visibility improves."
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 $10.59 yesterday.
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