As previously reported, Wells Fargo upgraded U.S. Cellular (USM) to Overweight from Equal Weight with a price target of $75, up from $38. The firm says that U.S. Cellular’s wireless sale to T-Mobile (TMUS) is just the first step of many it believes the company can take to unlock value for shareholders. Wells ultimately thinks U.S. Cellular on a sum-of-the-parts basis could be worth $95-$110/share, with its $75 price target assuming a discount for both timing uncertainty and regulatory hurdles. In a standalone scenario, the firm believes U.S. Cellular is worth $20/share.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on USM:
- T-Mobile to acquire U.S. cellular operations of UScellular for $4.4B
- T-Mobile’s deal for U.S. Cellular inexpensive, accretive, says Oppenheimer
- M&A News: T-Mobile Snaps Up USM’s Operations, Assets for $4.4B
- T-Mobile to acquire substantially all of U.S. Cellular in $4.4B transaction
- UScellular and TDS Announce Sale of Wireless Operations and Select Spectrum Assets to T-Mobile for Approximately $4.4 Billion in Cash and Assumed Debt