Leap Wireless International Inc., the San Diego-based pay-as-you-go wireless carrier, climbed the most in three weeks after Janco Partners Inc. raised its rating on the stock to strong buy.
The shares rose 4.2 percent to $6.02 at the close in New York. The stock had fallen 28 percent in 2012, its sixth straight year with a decline of at least 20 percent.
The company has spectrum that may be valuable in an acquisition, and the stock is worth at least $7.50, said Gerard Hallaren, an analyst at Greenwood Village, Colorado-based Janco. Even if Leap’s quarterly earnings this month disappoint investors, Hallaren said he expects the shares to rebound.
“Expectations for the fourth quarter are fairly low,” he said in an interview. “Should the company miss, I think the stock will not stay down more than a couple of days.”