Wells Fargo Raises Consolidated Net Add Estimate For LEAP

Wells Fargo is raising its consolidated (voice & broadband) net add estimate for Leap Wireless International LEAP from a conservative 80,000 to 135,000. “We estimate Street consensus estimates are roughly 122,000,” Wells Fargo writes. “We note that the major adjustment in this change was driven by a lower churn assumption. Specifically, our Q4 churn estimate is 4.6% versus our prior estimate of 5.0%.” Wells Fargo said that it believes LEAP has helped lower churn trends by its recent move to all inclusive pricing, no longer offering first month free as well as the greater selection of smartphones. Leap Wireless International currently trades at $12.88.