Telephone and Data upgraded to Overweight from Neutral at JPMorgan

JPMorgan analyst Philip Cusick upgraded Telephone and Data Systems (TDS) to Overweight from Neutral with a $38 price target after the company announced that U.S. Cellular (USM) is exploring strategic alternatives. Telephone and Data owns 82% of U.S. Cellular, and the stake represents the majority of its value, the analyst tells investors in a research note. 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.