Market Overview

UPDATE: Oppenheimer Downgrades MetroPCS Communications to Underperform on Deal Expectations

Related PCS
Google's New Wireless Service Aimed At 'Kids'
Citi: Dish Network's 3 Options To Unlock Value

Oppenheimer reduced its rating on MetroPCS Communications (NYSE: PCS) from Perform to Underperform.

Oppenheimer noted, "We expect the five smaller wireless carriers to merge into one company. Most industries reach three players over time, which is a reasonable scale/choice/competitive mix. The likely path to this is for Sprint to acquire LEAP, then merge with the combined PCS/T-Mobile within two years. CLWR will be last in the process. We are… downgrading PCS to Underperform in view of these expectations. We believe T-Mobile acquired PCS for its spectrum (enables 20x20 LTE though with limited geographic coverage), and to gain a public currency and more coverage, and would like to have LEAP's spectrum also. Sprint has a major incentive to acquire LEAP before T-Mobile does, as it will be at a network advantage and may have a tough time negotiating a favorable merger with T-Mobile without it."

MetroPCS Communications closed at $12.04 on Wednesday.

Latest Ratings for PCS

Apr 2013Morgan StanleyReinstatesEqual-weight
Apr 2013Guggenheim SecuritiesUpgradesNeutralBuy
Apr 2013NomuraMaintainsNeutral

View More Analyst Ratings for PCS
View the Latest Analyst Ratings

Posted-In: OppenheimerAnalyst Color Downgrades Intraday Update Analyst Ratings


Related Articles (PCS)

Around the Web, We're Loving...