Leap Wireless, MetroPCS Downgraded At J.P. Morgan
October 01 2009 - 8:39AM
Dow Jones News
Analysts at J.P. Morgan cut their ratings on Leap Wireless
International Inc. (LEAP) and MetroPCS Communications Inc. (PCS) to
neutral from overweight Thursday.
"We have become increasingly concerned with wireless
fundamentals as the industry faces secular challenges, with high
penetration and heavy competition causing downward movement on
price and increased acquisition costs," they wrote in a note to
clients.
"We believe Leap and Metro have been forced to operate more and
more defensively, and we expect to see additional ARPU [average
revenue per user] erosion over time while long-term margin guidance
could be challenging."
Shares of Leap ended Wednesday at $19.55 and those of MetroPCS
closed at $9.36.
-415-439-6400; AskNewswires@dowjones.com