In a report released today, Gabelli & Company commented on US Cellular USM. Gabelli & Company was bullish on the wireless operator.
Gabelli writes, “US Cellular reported mixed 1Q results. Revenues were slightly better than expected, while EBITDA was slightly weaker than expected. Retail customer loss increased over 4Q, while retail service ARPU, postpaid ARPU, and postpaid churn improved sequentially and year-over-year. Recommendation: BUY. USM is trading at 4.7x 2011E and 4.1x 2012 EBITDA, at a significant discount to recent wireless transaction multiples. The company is increasing its smartphone penetration and migrating subscribers to the Belief Plans at a rapid rate (which should drive ARPU and improve churn in the long term). We estimate 2011 PMV at $74 a share (based on 7.5x FY EBITDA), growing to $85 in 2012.”
Gabelli & Company maintains a Buy rating on US Cellular Corp. Shares of the company finished the trading day on Friday down slightly, closing at $48.92 after opening at $49.11.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Posted In: Analyst ColorAnalyst RatingsGabelli & CompanyTelecommunication ServicesUS CellularWireless Telecommunication Services
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in