MetroPCS Communications Upgraded (PCS)

MetroPCS Communications (NYSE: PCS) has been upgraded at Macquarie Equities Research today to outperform. The price target on the shares is $12.00 based on a discounted cash flow model. According to Google Finance, "MetroPCS Communications, Inc. (MetroPCS) is a wireless communications provider that offers wireless broadband mobile services under the MetroPCS brand in selected metropolitan areas."

The analyst cited strong fourth quarter subscriber metrics as well as new pricing plans and structure in upgrading the stock. On Tuesday, MetroPCS (PCS) management announced that EBITDA margin in core markets would drop to the mid 30% range versus 42.7% in 3Q09. As a result of this disappointing guidance PCS shed 11.7% of its value during yesterday's trading day. The analyst wrote in his report that "we find the margin guidance worrisome, but believe questions remain unanswered and leave our estimates under review." MetroPCS shares are currently flat on the day at $6.36. For more analyst ratings visit Benzinga's Analyst Ratings.