Auriga Has Hold Rating On MetroPCS

Auriga has a Hold rating and a $13 price target on MetroPCS PCS. In a note sent to investors, Auriga writes, "We are making changes to our model for MetroPCS (PCS, Hold), to reflect the charges and savings resulting from their recent bond swap activities. The company has recently new bonds with a lower interest rate and used the proceeds to call in older bonds. As a result, we are lowering our 4Q10 EPS estimate to reflect the one-time interest charges associated with these transactions. We are also increasing our forward quarterly estimates for 2011 by 1.5 cents each quarter to reflect the savings in interest charges post the swap. Our price target remains unchanged at $13." Shares of PCS gained 3 cents yesterday to close at $12.57.