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Research Alert: CFRA Maintains Hold Opinion On Shares Of Telephone And Data Systems, Inc.

05/10/2021 20:25

12:20 AM EDT, 05/11/2021 (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 $27, applying an EV/EBITDA multiple of 6.5x to our '21 estimate, a slight discount to peers, reflecting strong competition. We decrease our '21 EPS estimate by $0.59 to $0.94 and lower '22's by $0.64 to $0.99. TDS reported Q1 operating EPS of $0.52 vs $0.59, $0.17 above consensus. Q1 revenue increased 4%, driven by 9% growth in residential revenue primarily due to a 9% increase in the number of broadband connections and 5% growth in revenue per connection, partially offset by a 6% drop in commercial revenue, which continues to be impacted by competitive local exchange carrier declines, and a 3% drop in wholesale revenue, due to reductions in special access in the incumbent wireline market. TDS will continue to invest heavily in fiber expansion, with plans to add an additional 150k service addresses this year.