Shares of U.S. Cellular and Telephone and Data Systems may be due for more gains following President-elect Donald Trump's victory, according to Raymond James. The investment bank upgraded both names to outperform from market perform. Its $86 price target for U.S. Cellular reflects 32% upside, while Telephone and Data Systems' target of $51 implies more than 56% upside, as of Wednesday's close.
"We see significant upside in shares of both stocks given the ongoing strategic review and announced asset sales at USM, and now feel the regulatory path to approval is cleaner and timeline should be better," he wrote in a Thursday note. "We feel the valuation cushion is large enough in both stocks to account for these risks, and we are now less concerned about the negative catalyst of the TMUS deal not going through as currently proposed," he continued.