UPDATE: JP Morgan Upgrades United States Cellular to Neutral on Valuation

JP Morgan raised its rating on United States Cellular

from Underweight to Neutral and increased its price target from $37 to $38. JP Morgan noted, "US Cellular has underperformed the wireless telecom sector YTD, returning -13% vs. an average of +14% for the wireless telecom companies under our coverage. While we still believe that USM faces strong headwinds in the wireless industry as the sixth largest US wireless operator, we find it fairly valued at the current level and believe that further downside risk from this point is limited and is offset by potential upside from continued smartphone penetration driving ARPU higher, valuable assets, which include its stake in the L.A. Partnership with Verizon Wireless and spectrum holdings, and potential industry M&A dynamics." United States Cellular closed at $38.37 on Monday.