PCS: Buckling Under the Weight of Sprint, Verizon
The cut-rate prepaid cellular market, though representing fully a third of the growth in wireless in the U.S., is not always a comfortable place to be, as evidenced by the results today from Metro PCS (PCS), the discount prepaid cellular operator whose stock was cut by a third after disappointing Q2 earnings.
In a note to clients, Thomas Weisel analyst James Breen cut his rating on the stock to “Market Weight” from “Overweight” and cut his price target to $10 from $21. Ouch.
