Analyst Sees Positives From Sprint/T-Mobile Hearing
AT&T/Time Warner approval “bodes well” for T-Mobile/Sprint, though “probability and timing are still unpredictable,” Macquarie Research’s Amy Yong said after a Senate hearing on the wireless deal (see 1806270068). “There hasn’t been any indication from the DoJ/FCC to give us…
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confidence on the deal,” she wrote investors. “T-Mobile filed its Public Interest Statement last week highlighting the benefits of a combo including: increased competition, rural broadband access and affordable 5G.” In the interim, “it’s business as usual for Sprint” with both average revenue per user and churn improving, Yong said. Wells Fargo’s Jennifer Fritzsche upgraded T-Mobile from market perform to outperform, noting its stock is down 8 percent since April 30. “While we still believe this deal will by no means be a layup, recent conversations with some of our D.C. contacts have made us more optimistic,” she said, “estimating a deal approval probability of 60 percent.”