UPDATE: Deutsche Bank Lowers PT on Metro PCS from $23 to $20

Deutsche Bank has published a report on Metro PCS

lowering the price target. In the report, Deutsche Bank wrote, "PCS declined 37% yesterday on weak churn trends and concerns about the value (or lack thereof) of smartphone adoption. We recognize these concerns and have reduced our ests and PT (to $20 from $23). However, we maintain BUY for 2 reasons. (1) Churn was the key reason EBITDA missed as top line drivers such as gross adds and ARPU beat/met; PCS even gained share. So, revisions to EBITDA ests are not severe. (2) PCS is now at 3.9x '12E EBITDA and 9.8x '12E EPS, which we consider attractive vs. our ests for 16% EBITDA growth and 27% EPS growth." Deutsche Bank rated Metro PCS a BUY with a price target reduced from $23 to $20. Metro PCS closed Tuesday at $10.26.