UPDATE: JP Morgan Downgrades Leap Wireless International to Neutral on Recent Rally, Weak Fundamentals

JP Morgan reduced its rating on Leap Wireless International

from Overweight to Neutral with a reiterated $8 price target. JP Morgan noted, "We are downgrading the shares of LEAP Wireless from Overweight to Neutral, as we believe the stock has reached its fair value following the recently announced Deutsche Telecom-MetroPCS merger. With no fundamental improvements in the business, LEAP shares have gained 65%+ since its lows following the disappointing 2Q results, and is now near our Dec-13 price target of $8.00. For comparison, the S&P is up 3.7% for the same period. From here on we see limited upside to LEAP shares and we don't expect a deal for Leap Wireless in the very near term." Leap Wireless International closed at $7.59 on Tuesday.