Citi Raises PT on Sprint and T-Mobile
Citi analyst Michael Rollins raised the price targets on Sprint (NYSE: S) and T-Mobile U.S. (NYSE: TMUS) to better reflect option value from the possible merger scenario. Sprint's price target was raised from $8.50 to $10.50 and T-Mobile's PT increased from $28.00 to $33.50.
Following media reports on a potential bid, Rollins reported that he sees a 60% probability that Sprint will bid for T-Mobile. His data also shows a 50% probability on the deal gaining regulatory approval.
Citi reiterated a Neutral rating on Sprint and T-Mobile.
Since Thursday, shares of Sprint have been 28% from the Wall Street Journal's report on possible bid on December 13th. Sprint and T-Mobile closed at $10.40 and $33.37, respectively, on Thursday. Shares of Sprint ore currently down 4.12% and T-Mobile is trading down 3.30%.
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