Tuesday, September 25, 2012

Leap Wireless: Raymond James Upgrades; Bullish On Prepaid Mkt

Leap Wireless (LEAP) shares are getting a lift today from Raymond James analyst Ric Prentiss, who this morning raised his rating on the prepaid wireless company to Outperform from Market Perform, setting a $20 price target.

“While we expect that competition in the prepaid space will continue to be intense,” he writes, “we believe that it has begun to stabilize, and feel that the macro trends of current wireless subscribers shifting from traditional postpaid to higher value prepaid plans will accelerate.” He says Leap will be a beneficiary of the trend, given an ability to offer lower price plans with maintaining healthy margins “given that its facilities-based busienss was built from the ground up with a low cost structure in mind.”

LEAP is up 54 cents, or 3.3%, to $16.84.

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