UPDATE: Guggenheim Downgrades LEAP Wireless to Neutral

Guggenheim Partners has published a research report on LEAP Wireless LEAP and has downgraded the company from Buy to Neutral after the company research 1Q earnings. In the report, Guggenheim writes, "We estimate Leap sold around 1 million smartphones in 1Q, with ~70% going to new smartphone users. We do not believe investors should be opposed to the company's spending on subsidies to drive ARPU growth. Leap may well be making the right strategic choice for the long term, but we think investors could be disappointed with near-term results as the business model transitions—especially as we enter into the seasonally slower summer period." Guggenheim has also lowered the price target to $8.50 on LEAP Wireless, which is currently trading down $1.93 from yesterday's $7.71 closing price.