Metro PCS Shows Positive 3Q Store Checks

Deutsche Bank maintains it's Buy on MetroPCS

based on 3Q checks, which surveyed 85 stores in 10 states. The key finding is that rate plan mix continues to improve primarily due to strong sales of smartphones, which are frequently cited as PCS' best selling handsets. The most consistent data point from the PCS store checks was the strong demand for smartphones. For example, 60% of the stores we contacted cited the BlackBerry Curve (which requires a $60 plan) as one of the most popular handsets. Deutsche Bank views MetroPCS as one of the most attractively valued wireless carriers in the sector. Risks include price declines due to competitive pressure, elevated customer churn, and the strategic financial risks associated with its planned LTE upgrade. PCS is trading slightly higher, up $0.15 today