MetroPCS Communications, Inc. (PCS)

[bowonwing]

1/12/2010 S&P lowers TP to $10, from $12 and maintains buy: PCS reported Q4 subscriber net additions of 317k vs. our estimate of 255k, while churn of 5.3% was inline with our estimate.
The company also announced a new pricing structure that focuses on
all-inclusive plans and includes taxes and fees in the plan price. We are reducing
our '09 earnings per share estimate by $0.01 to $0.53 and '10 by $0.22 to $0.60. The
reduction is due to lower ARPU estimates, but we still expect solid EBITDA
growth going forward. We are reducing our 12-month target by $2 to $10, based
on enterprise value/EBITDA peer analysis. /J.Moorman-CFA, from S&P PCS Stock report.

Last year Moorman had an $18 TP for PCS, down about 40% since then. Went from $18, to $14, to $12 and now to $10.