Gabelli Upgrades MetroPCS (PCS) to Buy; Valuation Call
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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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Gabelli upgraded MetroPCS (NYSE: PCS) from Hold to Buy.
Gabelli analyst says, "PCS reported somewhat weaker than expected 2Q’11 results (with revenues and EBITDA slightly below our estimates, net adds at 199K, ~50K lower than our estimate, and churn ~50 bps higher than our expectation)...PCS also increased its 2011 CAPEX guidance range to $0.9-$1 bil. (up from $700-$900 range), to reflect additional CAPEX needed to expand network capacity to satisfy year-over-year significant customer growth and the demands put on the CDMA network from increased data consumption (based on the popularity of Android devices that represented ~40% of handset sales in the quarter)...Due to the above-mentioned factors, the stock was down $5.65 or ~35% on Tuesday, which we view as a bit of an overreaction (i.e. 2Q is typically a seasonally slow quarter)."
For more ratings news on MetroPCS click here and for the rating history of MetroPCS click here.
Shares of MetroPCS closed at $10.26 yesterday.
Gabelli analyst says, "PCS reported somewhat weaker than expected 2Q’11 results (with revenues and EBITDA slightly below our estimates, net adds at 199K, ~50K lower than our estimate, and churn ~50 bps higher than our expectation)...PCS also increased its 2011 CAPEX guidance range to $0.9-$1 bil. (up from $700-$900 range), to reflect additional CAPEX needed to expand network capacity to satisfy year-over-year significant customer growth and the demands put on the CDMA network from increased data consumption (based on the popularity of Android devices that represented ~40% of handset sales in the quarter)...Due to the above-mentioned factors, the stock was down $5.65 or ~35% on Tuesday, which we view as a bit of an overreaction (i.e. 2Q is typically a seasonally slow quarter)."
For more ratings news on MetroPCS click here and for the rating history of MetroPCS click here.
Shares of MetroPCS closed at $10.26 yesterday.
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