MetroPCS: Buy the Stock Before Earnings, Credit Suisse Says
Credit Suisse analyst Jonathan Chaplin advised investors to go long MetroPCS (PCS) heading into the company’s Q1 earnings announcement on Thursday. He thinks PCS will report stronger than expected results.
Chaplin also sees two coming events that should provide support to current pricing in the pre-paid wireless market. One, he notes that Sprint (S) will unveil a new pre-paid strategy next week that he says will be aimed at segmenting subscribers, and not pressure ARPU. Chaplin also notes that a smaller pre-paid operator called Page Plus is planning to boost its price of its unlimited text, talk and 20 MB of data plan to $45 from $40 on May 18.