UPDATE: Citigroup Upgrades US Cellular Corporation to Buy, Reiterates $42 PT

In a report published Monday, Citigroup upgraded its rating on United States Cellular Corporation USM from Neutral to Buy, and reiterated its $42.00 price target. Citigroup noted, “We view the sale by USM of wireless assets within its Midwest cluster as positive evidence that the management team is increasingly recognizing its scale disadvantage when competing against the much larger national carriers. While we don't expect an outright sale of U.S. Cellular or TDS in the near-term, we are very encouraged by the nature of the transaction and the idea that USM is willing to sell operating markets, as the ability to effectively compete against the larger national carriers is becoming more difficult.” United States Cellular Corporation closed on Friday at $34.39.