Deutsche Bank Reiterates Buy on MetroPCS Communications (PCS)

Deutsche Bank is out with its report today on MetroPCS Communications PCS, reiterating Buy. In a note to clients, Deutsche Bank writes, "We will be focused on 3 things when MetroPCS reports 4Q10 results. (1) Net add drivers during 1Q, especially any impact from severe weather this winter, which may have contributed to the pre-announced weakness in 4Q net adds. (2) ARPU drivers during 2011, especially the impact from smartphone sales, which typically have higher rate plans. (3) Capex drivers during 2011, especially the impact from the LTE overlay, which was 1/2 of capex in 2010 and should be lower this year. Based on our outlook for strong sub growth and ramping FCF, we reiterate BUY." Deutsche Bank has a $20 PT on PCS. At the time of posting, shares of PCS closed at $13.06, down 0.15% from Tuesday's close.