Nov. 26 at 6:20 PM
Citi resumed coverage of Telephone and Data Systems and its subsidiary Array Digital (formerly US Cellular) with Buy ratings, saying recent asset sales have reshaped both companies and opened new paths for financial growth. The firm set a
$45 price target for TDS and
$37 for AD, and expects AD to issue a
$21 special dividend in 2026.
TDS and AD have agreed to sell their wireless operations to T-Mobile and divest spectrum holdings, with several transactions still pending. Citi said additional value could be unlocked once the remaining spectrum sales close, likely triggering more special dividends from AD and supporting a
$500 million share buyback at TDS—over 11% of its market cap.
Citi also sees room for stronger tower-asset revenues at AD and faster fiber expansion at TDS after these divestitures.
$TDS $TMUS $C