UPDATE: BMO Capital Markets Downgrades Leap Wireless; Lowers PT

According to a research report published this morning, BMO Capital Markets has downgraded Leap Wireless

from Market Perform to Underperform, and lowered PT from $7 to $5. In the report, BMO Capital Markets said, "We are downgrading our rating of Leap stock to Underperform (from Market Perform) on relative valuation and the deteriorating outlook for margins, profitability and free cash flow exacerbated by the new iPhone deal. This outlook is further challenged by the company's aggressive push into the margindilutive MVNO and Muve Music businesses." Leap Wireless closed yesterday at $5.77.