Standpoint Research Downgrades MetroPCS (PCS) to Hold
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Price: $50.01 -0.02%
Rating Summary:
12 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 27
Rating Summary:
12 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 27
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Standpoint Research downgraded MetroPCS (NYSE: PCS) from Buy to Hold with a $14 price target.
The firm comments, "MetroPCS shares have crossed our $12 price target and are fairly valued at > 15X estimates for 2013-2014. This completes our fourth trade in-and-out of this name since 2009... Our target for 2013 is $14 and we expect PCS to take out the five-year high of $18 in 2014. It is the 100% move since the July 1 low that is forcing me to the sidelines. The good news is priced in (in) the near-term and PCS does have a history of earnings disappointments and sharp reaction sell-offs... there is execution risk, competition, market risk, advertising expenses tied to the PCS 4G roll-out and other concerns. We are hoping for a quarterly disappointment that will allow us to reinstate this name at a share price ~ 20% below the current quote as we did in August 2011 and September 2011. The share price move today in my opinion is on news that was expected and already priced in beforehand."
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 $11.19 yesterday.
The firm comments, "MetroPCS shares have crossed our $12 price target and are fairly valued at > 15X estimates for 2013-2014. This completes our fourth trade in-and-out of this name since 2009... Our target for 2013 is $14 and we expect PCS to take out the five-year high of $18 in 2014. It is the 100% move since the July 1 low that is forcing me to the sidelines. The good news is priced in (in) the near-term and PCS does have a history of earnings disappointments and sharp reaction sell-offs... there is execution risk, competition, market risk, advertising expenses tied to the PCS 4G roll-out and other concerns. We are hoping for a quarterly disappointment that will allow us to reinstate this name at a share price ~ 20% below the current quote as we did in August 2011 and September 2011. The share price move today in my opinion is on news that was expected and already priced in beforehand."
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 $11.19 yesterday.
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