Telephone and Data price target lowered to $34 from $36 at JPMorgan

JPMorgan analyst Sebastiano Petti lowered the firm’s price target on Telephone and Data (TDS) to $34 from $36 and keeps an Overweight rating on the shares. Following T-Mobile’s (TMUS) acquisition of U.S. Cellular’s (USM) wireless operations and select spectrum assets, the firm updated its sum-of-the-parts valuations. The analyst assigns an 80% chance of deal approval, believing T-Mobile poses less regulatory risk given limited overlap with US Cellular markets today. In addition, T-Mobile was prudent in its spectrum acquisitions from U.S. Cellular so as to limit potential spectrum aggregation concerns at the Department of Justice and Federal Communications Commission, says the firm. While the deal may face some conditions, it is likely to be approved in either a Democratic or Republican administration, adds JPMorgan.