UPDATE: Oppenheimer Downgrades MetroPCS to Perform

Oppenheimer has published a research report on MetroPCS PCS and has downgraded the company from Outperform to Perform after the company reported "very weak" 1Q earnings. In the report, Oppenheimer writes, "PCS reported a very weak first quarter, which is especially troubling in light that this is its seasonally strong period and the company faces incremental pressures going into the higher churn summer months. We are downgrading PCS from an Outperform to a Perform rating, accordingly eliminating our PT. On top of regular seasonality, we believe the company will be incrementally pressured next year by a multitude of factors, including: 1) Shortage of spectrum; 2) Expensive LTE phones; 3) Higher churn in its 2G smartphones; 4) Unlikely to get acquired in the next few years, and in our opinion, is likely to merge with LEAP to gain scale; 5) Most importantly, we expect competition to dramatically increase as larger competitors free up legacy networks." Oppenheimer has removed its price target on MetroPCS, which is currently trading down $0.75 from yesterday's $7.94 closing price.