CORRECTED - CORRECTED-UPDATE 1-RESEARCH ALERT-Baird cuts MetroPCS, Leap to n

(Corrects price target changes on both MetroPCS and Leap in paragraph 2)

July 30 (Reuters) - Robert W. Baird & Co downgraded wireless communication providers MetroPCS Communications Inc (PCS.N) and Leap Wireless International Inc (LEAP.O) to "neutral" from "outperform," citing intensifying competition and operating risks.

Analyst William Power also lowered his share-price target on Leap to $27 from $42, and MetroPCS to $14 from $21.

"With Sprint's Boost Unlimited and Tracfone's Straight Talk products both gaining traction, operating risks appear to be increasing," Power said in a note to clients.

The analyst expects the Straight Talk product to be rolled out nation-wide at some point, creating additional headline and operating risk.

Power also slightly lowered his 2010 average revenue per user (ARPU) for the companies to reflect the increased competitive concerns.

Shares of MertoPCS closed at $12.94 Wednesday on the New York Stock Exchange, while those of Leap closed at $25.34 on Nasdaq. (Reporting by Sakshi A Mattoo in Bangalore; Editing by Gopakumar Warrier)