Mint Mobile deal makes sense, not big T-Mobile needle mover, says Morgan Stanley

After T-Mobile announced an agreement to acquire Ka’ena Corporation, which includes Mint Mobile, Ultra Mobile and Plum, for a maximum of $1.35B in cash and stock, Morgan Stanley analyst Simon Flannery said the acquisition "makes sense. However, it is "not a big needle mover" and given T-Mobile’s existing position as Ka’ena’s exclusive MVNO partner, the firm is expecting a "modest financial impact" from the deal. Morgan Stanley has an Overweight rating and $175 price target on T-Mobile shares.