Leap Shares Surge as Guggenheim Sees $9-10/Share Buyout 'Justifiable'

Shares of Leap Wireless

are up more than 6 percent Thursday afternoon following a bullish note from Guggenheim's Shing Yin earlier. The analyst believes a Leap Wireless buyout in the $9-10 per share range could be justifiable. Yin sees a "high likelihood" the company could be purchased by MetroPCS/T-Mobile. Yin placed a 70 percent chance on the deal being done over the next six months. Yin said the $9-10/share range was justified based on Leap Wireless' spectrum value and 5.6 million subs. Guggenheim maintains a Buy rating and raised the price target on Leap shares from $7 to $8.50.