T-Mobile (TMUS): Takeaways From Management Meetings - Jefferies

August 8, 2016 7:05 AM EDT
Get Alerts TMUS Hot Sheet
Price: $56.74 -3.09%

Rating Summary:
    20 Buy, 7 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
Trade TMUS Now!
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.

Jefferies analyst, Mike MacCormack, reiterated his Buy rating on shares of T-Mobile US, (NASDAQ: TMUS) after hosting management meetings with T-Mobile Head of Investor Relations, Nils Paellmann. Network capacity continues to expand and the company is taking share from both AT&T and Verizon through a renewed focus on family plans which could offer upside to sub additions.

Deployment of 700Mhz is ongoing, with noticeable churn reduction in recently deployed markets. On the capacity side, efforts to refarm PCS/1900 spectrum for additional LTE builds should span the next 2-3 years, while AWS-3 deployments should begin later this year. Lastly, as the Broadcaster Auction progresses, we expect to see TMUS spend up to $8.3bn ($1.7bn used to acquire 700Mhz spectrum), maintaining the targeted 3-4x leverage target.

The analyst stated "T-Mobile’s recent share gains come with a renewed focus on Family Plans, an area previously dominated by VZ and T. The contracts provide a substantially higher lifetime value, coming with better data attach rates, despite creating some ARPU dilution. We expect gross adds to continue with impressive momentum, particularly as AT&T allows low end subscribers to churn. Although the family share plans are dilutive to ARPU, we believe T-Mobile can offset the pressures as subscribers opt for larger data buckets and unlimited plans."

.price target of $55.00

For an analyst ratings summary and ratings history on T-Mobile US, click here. For more ratings news on T-Mobile US, click here.

Shares of T-Mobile US, closed at $47.78 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments

Related Entities

Jefferies & Co, S3, Definitive Agreement

Add Your Comment