UPDATE: JPMorgan Downgrades Telephone & Data Systems (TDS) to Underweight

JPMorgan analyst Philip Cusick downgraded Telephone & Data Systems (NYSE: TDS) from Neutral to Underweight with a price target of $23.00 (from $27.00).

The analyst comments "We downgrade TDS to Underweight from Neutral and establish a Dec. 2022 price target of $23 (prior 2021 PT of $27). We use a discounted cash flow analysis to arrive at our price target and assume a 7.0% WACC and 2% perpetual growth rate. TDS trades at 5.3x our 2021 EBITDA estimate compared with other integrated carriers at 7.0x; the company now pays a 3.2% dividend yield compared with ~4-5% for peers. We believe most of the potential upside in TDS shares likely would come from its wireless business."

For an analyst ratings summary and ratings history on Telephone & Data Systems click here. For more ratings news on Telephone & Data Systems click here.

Shares of Telephone & Data Systems closed at $22.35 yesterday.

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