2023-08-08 14:20:41 ET
United States Cellular ( NYSE: USM ) rose ~25% Tuesday afternoon after JPMorgan upgraded the wireless telecommunications services provider on its strategic alternatives decision.
The agency upgraded the recommendation on the company to Overweight, and raised the price target to $52 from $24. The stock is currently trading at $38.68.
Telephone and Data Systems ( TDS ), which owns about 80% of US Cellular, had said that its board and the board of USM decided to initiate a strategic review for USM. The stock had surged 93% on the news.
The costs to drive gross adds and retain customers are uneconomic, so selling the company could be the right move. A sale should unlock value for both companies, according to JPMorgan.
The sell-side analysts and Seeking Alpha's Quant Rating system give the stock a Hold rating, with average price target by sell-side analysts of $24.00.
SA authors give the stock a Sell rating.
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United States Cellular rises after JPMorgan upgrades on strategic alternatives decision