J.P. Morgan Adjusting Estimates On Leap Wireless

According to J.P. Morgan, Leap Wireless

estimates are adjusted. J.P. Morgan reported that it is publishing an overview of the prepaid space, Prepaid Wireless: Prepaid Remains Relevant in the Data Era; Growth Is Split Between High-End Data and Low-End Lifeline Customers. “Coming into 1Q earnings is often the peak for Leap and PCS shares for the year. We continue to rate LEAP Overweight given the potential for significant margin expansion in 2Q as 1Q smartphone sales lift ARPU and gross adds and upgrades fade. We model EBITDA margin expanding to 20.9% in 2Q from 15.6% in 1Q.” Leap Wireless closed yesterday at $15.99.