Argus analyst Joseph Bonner raised his price target on T-Mobile (TMUS) to $105 and kept his Buy rating after the federal court decision this week to allow its Sprint (S) merger to proceed. The analyst believes that giving up Sprint's prepaid businesses and some spectrum to Dish (DISH) is a "good deal", and the merger should improve the company's competitive position relative to Verizon (VZ) and AT&T (T). Bonner adds that T-Mobile has been successful with its service plan innovations to drive "robust subscriber acquisition metrics".
Bearish flow noted in Dish Network with 3,393 puts trading, or 3x expected. Most active are Jan-24 17.5 puts and Jan-23 15 puts, with total volume in those strikes near 2,700 contracts. The Put/Call Ratio is 10.54, while ATM IV is up over 2 points on the day. Earnings are expected on February 22nd.
In fourth-quarter 2021, Consumer reported 667,000 wireless retail postpaid net additions. This consisted of 336,000 phone net additions and 369,000 other connected device net additions, offset by 38,000 tablet net losses. Consumer also reported 85,000 wireless prepaid net losses, which included TracFone results since November 23. Consumer reported 51,000 Fios Internet net additions in fourth-quarter 2021, and 339,000 Fios Internet net additions in full-year 2021. Consumer Fios revenues were $2.9 billion in fourth-quarter 2021, an increase of 5.6 percent year over year. Consumer reported 69,000 Fios Video net losses in fourth-quarter 2021.
"2021 was a transformational year for Verizon that will serve as a catalyst for us," said Verizon Chairman and CEO Hans Vestberg. "We delivered on all of our goals in 2021 and made great progress on our five paths of growth, finishing the year with strong operating and financial momentum. As we move into 2022, we have the necessary assets to realize our strategy that we laid out in 2019. We are laser focused on executing our 5G strategy and providing value to our customers, shareholders, employees, and society, as 2022 will be the most exciting year yet for Verizon."
Bearish flow noted in T Mobile with 5,430 puts trading, or 1.4x expected. Most active are Aug-22 95 puts and Aug-22 100 puts, with total volume in those strikes near 2,300 contracts. The Put/Call Ratio is 2.22, while ATM IV is up nearly 6 points on the day. Earnings are expected on February 2nd.