BWS Financial Upgrades Inteliquent (IQNT) to Strong Buy; T-Mobile Deal Changes Everything

BWS Financial upgraded Inteliquent (NASDAQ: IQNT) from to Strong Buy with a price target of $40.00 (from $22.00), saying the agreement with T-Mobile US (NASDAQ: TMUS) entirely changes our IQNT investment thesis, and investors continue to ignore what just happened.

Analyst Hamed Khorsand commented, "TMUS will use IQNT for all of their voice traffic in a long-term agreement where IQNT faces some investment costs to handle the traffic, but should more than make up for it by year 2"

He added, "The deal between IQNT and TMUS is setup where TMUS will begin to run all of their out-of-network voice traffic through IQNT. In an industry where every penny counts, investors should realize there are greater savings to TMUS than the gains to IQNT or we doubt TMUS would have entered into such an agreement."

For an analyst ratings summary and ratings history on Inteliquent click here. For more ratings news on Inteliquent click here.

Shares of Inteliquent closed at $19.75 yesterday.

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