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Research Alert: CFRA Maintains Hold Opinion On Shares Of United States Cellular Corporation

05/10/2021 14:01

06:00 PM EDT, 05/10/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $5 to $40, applying an EV/EBITDA multiple of 7.8x to our '21 estimate, comparable to the peer average, reflecting recent strong results. We increase our '21 EPS estimate by $0.14 to $1.97 and raise '22's by $0.04 to $1.92. USM reported Q1 operating EPS of $0.69 vs. $0.81, $0.06 above the consensus. Q1 revenue increased 6%, with a 1% increase in service revenue, driven by higher average revenue per user and 9% growth in tower rental revenues, and a 26% increase in equipment sales, driven by an increase in the number of units sold as well as the average price. USM reported 6k postpaid net losses and 3k prepaid net losses, but we note churn levels remain low at 1.12% and 4.37%, respectively. We expect USM will continue to focus on upgrading its network to 5G, deploying the spectrum purchased in the C-band auction as well as millimeter wave in select areas.