JPMorgan upgrades U.S. Cellular on strategic alternatives decision

JPMorgan analyst Philip Cusick upgraded U.S. Cellular to Overweight from Neutral with a $52 price target after the company said it is exploring strategic alternatives. 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. While U.S. Cellular’s churn is doing well, the costs to drive gross additions and retain customers are uneconomic, so selling the company “seems like the right move,” says the firm.