UPDATE: Pivotal Research Group Initiates Buy on Leap Wireless International

Pivotal Research Group initiated its coverage on Leap Wireless International LEAP with a Buy rating and a price target of $9. Pivotal Research Group commented, "We acknowledge that Q2 and Q3 are seasonally weak quarters for pre-paid & no contract carriers. However, expectations and sentiment on LEAP are quite low, and we believe the stock is currently undervalued relative to its EBITDA growth profile and potential strategic value to larger carriers and potential M&A suitors." Leap Wireless International closed at $6.53 on Tuesday.