JPMorgan analyst Philip Cusick upgraded Telephone and Data Systems (TDS) to Overweight from Neutral with a $38 price target after the company announced that U.S. Cellular (USM) is exploring strategic alternatives. Telephone and Data owns 82% of U.S. Cellular, and the stake represents the majority of its value, the analyst tells investors in a research note. The firm believes U.S. Cellular could be worth $80 per share based on a sum-of-the-parts valuation, nearly two-times Monday’s close despite the large rally Friday. The exploration of strategic alternatives “is likely to unlock substantial value, contends JPMorgan.
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Read More on TDS:
- U.S. Cellular price target raised to $29 from $26 at Citi
- US Cellular (NYSE:USM) Nearly Doubles After Announcing New Plans
- Telephone and Data rises 67.3%
- Citi upgrades Telephone and Data on U.S. Cellular strategic review
- Telephone and Data upgraded to Buy from Neutral at Citi
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