Gabelli & Company Reports on Telephone and Data Systems (TDS)

Gabelli & Company was bullish on Telephone and Data Systems TDS in a report released today. Gabelli writes, “TDS reported largely in-line 2011 results (revenues were a little ahead of expectations, while EBITDA was in line). While wireless EBITDA was slightly weaker than expected, wireline EBITDA was meaningfully ahead of our estimates (~$6 million above our estimates). TDS repurchased 407.3K special common shares for $11.6 million. Recommendation: BUY; Attractive wireless assets—sizeable (6M) and loyal (low postpaid churn) customer base, significant spectrum holdings in cellular and 700 MHz bands, Under-appreciated wireline business—TDS Telecom is an RLEC with a defensible rural footprint (just 12 households per square mile) and strong broadband market share in its territories.; Significant discount to sum-of-parts valuation—The stock currently trades at a 53% discount to our 2012 PMV of $71 per share.” Gabelli & Company currently has a Buy rating on Telephone and Data Systems. Stock of the company closed the day on Friday at $33.76, down slightly from the open of $33.90.