Auriga Downgrades LEAP To Hold

Auriga has published a research report on Leap Wireless International LEAP and has downgraded the company from Buy to Hold. In the report, Auriga writes "Competition in the U.S. wireless industry appears to be accelerating on the very low end (and the very high end). We think increased competition on the very low end will pressure net adds as well as margins for LEAP. We are lowering our estimates to below consensus. Our new $13 price target is based on a 2011 EV/EBITDA multiple of 4.7x. Our previous target multiple was 5.0x on higher estimates. We are lowering our target multiple slightly to reflect more risk to 2011 estimates." Auriga has also lowered the price target from $16 to $13 on Leap Wireless, which closed Friday at $11.55.