T-Mobile US: Potential Strategic Combo -- Gabelli & Co. (63.92)
Gabelli believes that T-Mobile US should command a 7.5-8.5x EBITDA multiple in a buyout/consolidation scenario. The broad communications sector in the U.S. continues to consolidate. While, in the near-term, the wireless industry will likely remain at four national players, in the long-run, they expect further consolidation. They continue to view TMUS as essentially the only way for a domestic or foreign company to enter the U.S. wireless market in a meaningful way. Potential acquirers of TMUS could include Comcast, SoftBank/Sprint, Charter/Liberty, DISH, foreign carriers, and/or private equity. Firm calculates a 2018 PMV of $75 per share, growing to $115 per share in 2021.