CHICAGO, March 25, 2013 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include MetroPCS Communications Inc. (NYSE: PCS), Deutsche Telekom AG cronym>(OTC:DTEGY), AT&T, Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ) and Sprint Nextel Corp. (NYSE: S).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Friday's Analyst Blog:
MetroPCS Crosses Final Barrier
MetroPCS Communications Inc. (NYSE: PCS) has finally received a favorable ruling by the Committee on Foreign Investment in the United States (CFIUS) regarding the combination of T-Mobile USA (a subsidiary of Deutsche Telekom AG cronym>[OTC:DTEGY]) with the former. This clears MetroPCS of all regulatory barriers.
CFIUS believes that the merger will not be a threat to the U.S. national security, giving clearance to the proposed deal.
Besides the FCC, the proposed merger has been approved by board of directors of both, MetroPCS and Deutsche Telekom. The deal will be sealed after MetroPCS shareholders' approval through a meeting on Apr 12. It is expected to close in the first half of 2013.
Per the deal, MetroPCS will get a 24% stake in the combined company and Deutsche Telekom will get the rest. The transaction process of the deal could be viewed as recapitalization of MetroPCS.
The deal is expected to generate positive synergies for both the companies in terms of financial growth with estimated five-year CAGR for revenues, EBITDA and free cash flow in the range of 3%-5%, 7%-10% and 15%-20%, respectively.
Apart from financial benefits, Merger between MetroPCS and T-Mobile will boost their operation capabilities in the U.S. and will also offer strong resistance against the big industry players like AT&T, Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ) and Sprint Nextel Corp. (NYSE: S).
Currently, MetroPCS and T-Mobile have over 9 million and 33 million subscribers, respectively. This will form a subscriber base of more than 40 million for the combined company.
Further, the deal will also add to spectrum capacity and result in higher penetration of LTE networks that support speeds up to 20x20 MHz of 4G LTE in several regions. T-Mobile will be able to benefit from MetroPCS' superior market position in no contract wireless services, while MetroPCS will gain from T-Mobile's advance B2B services and Mobile virtual network operator (MVNO) platform.
MetroPCS has a Zacks Rank #3 (Hold).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.