MetroPCS Communications, Inc. (PCS)

[bowonwing]

05/06/10 S&P RAISES OPINION ON METROPCS COMMUNICATIONS SHARES TO STRONG BUY FROM BUY (PCS 7.99): PCS reports Q1 earnings per share of $0.06 vs. $0.07, $0.07 below our estimate. Service revenue was 6% better than estimated on strong net adds and higher than expected revenue per user. EBITDA was lower than expected due to the cost of higher net adds.We believe PCS's
new pricing plans are gaining favor with subscribers and momentum should be solid throughout 2010.We are raising our 2010 earnings per share estimate by $0.01 to $0.54 and 2011's by $0.16 to $0.77.We are increasing our 12-month target price by $2 to $12 based on enterprise
value/EBITDA peer analysis. /J.Moorman, CFA