NEW YORK (AP) — Shares of MetroPCS Communications climbed Tuesday after a UBS analyst said the low-cost wireless carrier's shares have been oversold.
Analyst John C. Hodulik reiterated a "Buy" rating on MetroPCS, which sells prepaid wireless plans with no required contract. On Tuesday, the stock rose 48 cents, or 4.1 percent, to $12.25 in afternoon trading, though it is still down nearly more than 17 percent year-to-date, hurt by investor worries over competition.
"MetroPCS shares have come under severe pressure after Tracfone's launch of a Straight Talk unlimited $45 plan using the (Verizon Wireless) network," the analyst wrote in a note to investors. MetroPCS, he noted, also sells service through Wal-Mart at a similar price to Straight Talk. But this makes up less than 5 percent of Metro's gross customer additions, so the Tracfone service likely won't eat too much into the company's business.
Shares of rival Leap Wireless International rose 51 cents, or 4.3 percent, to $12.28.