UPDATE: Jefferies Reduces PT to $6 on Leap Wireless International; Increased Pre-Paid Competition

Jefferies reiterates its Hold rating on Leap Wireless International

and reduces its price target from $10 to $6. Jefferies comments, "As the post-paid market slows, we believe the Big-Four carriers are increasingly focusing on the pre-paid market to drive growth. Additionally, ARPU growth at Leap is likely to slow as smartphone penetration approaches the smartphone sales rate. As such, we believe Leap's market opportunity and growth potential may be limited. We are reducing our PT to $6 from $10, and maintain our Hold rating." LEAP closed at $5.23 on Thursday.