UPDATE: J.P. Morgan Lowers Leap Wireless' PT

According to a research report published earlier today, J.P. Morgan has lowered Leap Wireless' LEAP PT from $13 to $12. In the report, J.P. Morgan said, "Leap reported mixed 1Q12 results, with strong in-region as well as out-of-region net adds in a seasonally strong quarter. 1Q12 net adds of 258k (257k voice adds / 1k broadband adds) were better than our 230k estimate (250k voice/-20 broadband) and consensus estimate of 242k, as the company had decent inventory and Muve Music devices and smartphones continued to generate traction. Churn came in at 3.3%, higher than our 3.2%. Gross adds of 860k were above our 811k. Service revenue came in at $774m, vs our $771m on $42.59 ARPU vs our $42.50, while adj. EBITDA of $131m was 9% below our $143m on worse than expected margin of 16.9% vs our 18.5%." J.P. Morgan maintains its Overweight rating on Leap Wireless, which closed yesterday at $7.71.