Brightpoint Named a Winner After AT&T Drops T-Mobile Bid (CELL, T)

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By Jon C. Ogg Published
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Brightpoint Inc. (NASDAQ: CELL) is being called a winner now that AT&T Inc. (NYSE: T) has dropped its planned acquisition of T-Mobile.  Canaccord Genuity is reiterating its “Buy” rating and its $14.00 price target objective after a $9.14 close on Monday.

The distributor for mobile communications devices should see “increased visibility into its logistics business for 2012 as T-Mobile is a significant forward- and reverse-logistics customer.”

The research noted, “Further, we believe an increasing mix of smartphones globally should increase opportunities for Brightpoint’s logistics services and raise ASPs in the company’s distribution business, and both should increase gross profit dollars.”

The biggest issue is that the associated overhang on this stock should dissipate as T-Mobile is a significant customer for Brightpoint, while AT&T is NOT a customer. This overhang has pressured Brightpoint shares since March.

Today’s research noted that the business loss would have been $0.10 to 0.13 off of the earnings per share starting in 2013.  Now it should win from the increasing mix of smartphones and the firm’s checks indicate solid global smartphone sales despite specific struggles by RIM and HTC.

JON C. OGG

Contact [email protected] for any questions or corrections.

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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