Deutsche Bank Comments On MetroPCS Pre-Market

According to Deutsche Bank, MetroPCS PCS reports 1Q11 results pre-market on Tuesday, May 3rd. Deutsche Bank said that it is focused on 3 key issues heading into the quarter. “(1) potential upside to our net add est (425k) given smartphone promos launched in mid-Feb, expected seasonal churn relief (est 3.2% vs. 3.5% in 4Q10), and the 1Q net add beats at Leap and Sprint; (2) potential upside to our ARPU est ($39.90) on smartphone penetration approaching 15%; and (3) comments on how recent gas price inflation might impact 2Q subscriber growth. We reiterate BUY based on our outlook for strong subscriber growth and ramping FCF. PCS remains a Top Pick for 2011.” MetroPCS closed yesterday at $16.83.