- T-Mobile (TMUS +0.8%) earned an upgrade to Buy from MoffettNathanson, which says the breakup of merger talks with Sprint (S +0.2%) will ultimately benefit the upstart No. 3 carrier.
- The collapse of the deal "will ultimately prove to be good news for the sector," writes Craig Moffett, though with one clear loser: “Robbed of the prospect of a merger — at least for now — Sprint will now have to focus on sustainability. That means less, not more, promotionality."
- And that means fewer net subscriber additions, which will be absorbed by Sprint's rivals, he adds.
- Moffett has raised his price target on TMUS to $73 from $69, while trimming his price target on Sprint to $2 from $6. (Sprint's currently at $6.16.)
- He's reiterated a Buy on Verizon (VZ +1.6%; $51 price target) and a Neutral on AT&T (T -0.2%), based on wireline troubles, debt and declining revenues at DirecTV.
- Now read: Actionable Insights - Strong Performance In Q3 2017
Original article