Telephone And Data Systems: Raymond James Raises PT to $49, Reiterates Outperform Rating

Telephone And Data Systems: Raymond James Raises PT to $49, Reiterates Outperform Rating

Raymond James has recently elevated its price target for Telephone and Data Systems (NYSE: TDS) to $49.00, maintaining its Outperform rating ahead of the company's anticipated financial performance [1]. This move reflects the analyst's optimism regarding TDS's future prospects and growth potential.

Currently, TDS stock is trading at $41.40, marking a significant milestone by hitting a 52-week high. The stock's impressive performance is underscored by a substantial 1-year return of 95.74%, indicating robust growth and positive market sentiment [2]. TDS's strong liquidity, evidenced by a current ratio of 1.74, and its 52-year track record of consecutive dividend payments, further bolster investor confidence.

The analyst's positive outlook is supported by recent strategic moves by TDS. The company has made significant strides in the energy sector with a series of strategic acquisitions and partnerships, enhancing its market presence and operational capabilities [1]. Additionally, TDS's dual listing on the newly established NYSE Texas reflects its commitment to its Texas roots and its longstanding relationship with the NYSE [1].

In other recent news, United States Cellular, now renamed Array Digital Infrastructure, Inc., announced plans to issue a special cash dividend following its wireless operations sale to T-Mobile US [2]. This transaction is expected to close on August 1, 2025, subject to certain conditions. The U.S. Department of Justice has closed its antitrust investigation into the proposed transaction, although the deal still requires approval from the Federal Communications Commission.

Moreover, TDS has announced a CEO transition agreement, with James W. Butman stepping down as President and CEO of TDS Telecommunications LLC. He will receive a lump sum payment of $2,000,000 as part of his departure agreement [2]. Additionally, UScellular entered into a Fourth Amended and Restated Credit Agreement with CoBank, ACB, and a group of lenders, creating a direct financial obligation for the company [2].

These strategic moves and the analyst's positive outlook suggest that TDS is well-positioned for continued growth and success in the coming years.

References:
[1] https://www.investing.com/news/analyst-ratings/txo-energy-partners-price-target-raised-to-24-by-raymond-james-93CH-4152913
[2] https://ca.investing.com/news/company-news/telephone-and-data-systems-stock-hits-52week-high-at-414-usd-93CH-4119664