MetroPCS Communications, Inc. (PCS)

[bowonwing]

PCS TP raised to $15 and S&P REITERATES
STRONG BUY OPINION ON SHARES OF
METROPCS (PCS 9.44): PCS reports Q2
earnings per share, before one-time items, of
$0.23 vs. $0.10, $0.08 better than our estimate.
PCS beat due to service revenue that was 3.3%
better than our estimate, and EBITDA that was
16% better than expected on low churn of 3.3%.
We view these results as extremely strong considering
weakness seen at other prepaid carriers.
We are increasing our 2010 earnings per
share estimate by $0.29 to $0.79 and 2011's by
$0.26 to $1.05.We are increasing our 12-month
target price by $2 to $15 based on enterprise
value/EBITDA peer analysis. /J.Moorman, CFA