UPDATE: Deustche Bank Upgrades Leap Wireless On Potential Improvement In 700 MHz Lower A Block Spectrum Market

In a report published on Thursday, Deustche Bank analyst Brett Feldman upgraded Leap Wireless LEAP from a Sell rating to a Hold rating and raised the price target from $15.00 to $16.40. In the report, Deutsche Bank says "We are upgrading LEAP to Hold and increasing our PT to $16.40. Our improved view is based on the potential improvement in the market for 700 MHz lower A block spectrum based on media reports that T-Mobile is interested in acquiring Verizon's holdings in this band. LEAP has agreed to sell itself to AT&T for $15/share cash plus a CVR for its A block license. We previously saw little present value in the CVR due to limited use of/demand for this band. We now see potential for LEAP to either sell its license or at least have the CVR value benefit from a precedent transaction. Historical spectrum valuations imply the shares are fairly valued or have modest upside pot'l, so we are moving to Hold." Leap Wireless closed on Wednesday at $16.31.