“One of the most knowledgeable analysts in the industry,” as one advocate describes him, repeat first-teamer Philip Cusick of J.P. Morgan “has been able to parlay his deep understanding of wireless technology into determining which business combinations would make sense,” that backer adds. The 39-year-old analyst is also No. 2 in Cable & Satellite. He covers 14 names here, a slight decrease over the past year as a result of M&A activity. Competition and slowing revenue opportunities have left Cusick wary of most service providers. Furthermore, he says, “rising interest rates give investors an alternative to owning high-yielding telecom shares.” Because the company is poised to make market share gains, MetroPCS Communications is an exception. In late April, after a period of restriction, Cusick rated it overweight, at a split-adjusted $15.47. MetroPCS acquired T-Mobile USA in May, and its shares now trade as T-Mobile US. “At the time, there had been a lot of skepticism about the T-Mobile story,” he says, “and we were fairly differentiated in our optimism.” The stock leaped 50.9 percent, to $23.35, through August. Over the same period the sector gained 9.1 percent. — Pam Baker |
The 2013 All-America Research Team: Telecom Services, No 1: Philip Cusick
