Morgan Stanley is adjusting its estimates on Leap Wireless International Inc. LEAP.
“We raised our base case estimate from $13 to $14 on a better ARPU outlook,” Morgan Stanley writes. “We increased our 2011e EBITDA from $564m to $576m (vs. consensus' $587m) as higher blended ARPU (MSe $39.87) and better churn trends provide some momentum.
“We have lowered our voice net adds estimate for the year by 17k to 684k due to weaker than expected 1Q results, which could provide some upside to EBITDA in the near-term. Our 2011 capex estimate increased $23m to $433m (15.3% of service revenue), reflecting the 4G / LTE launch in 2H11.”
Leap Wireless closed Tuesday at $17.20.
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Posted In: Analyst RatingsLeap WirelessMorgan StanleyTelecommunication ServicesWireless Telecommunication Services
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