United States Cellular Corp
USM: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$23.00 | Hrv | Gdmz |
US Cellular Earnings: Continued Customer Losses Point to the Wisdom of the T-Mobile Deal
US Cellular’s second-quarter results were in line with our expectations and don’t alter our view of the firm’s standalone prospects. With the pending sale of the wireless business to T-Mobile, attention has shifted to the sale approval process and the tower and spectrum assets that US Cellular will retain. With little incremental information in these areas, we are maintaining our $52 fair value estimate, which balances a 75% chance of the T-Mobile deal closing against our $25 standalone US Cellular fair value estimate.