T-Mobile US (TMUS) PT Lifted at Nomura; Still Long-Term Cautious

August 13, 2013 10:57 AM EDT
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Price: $59.62 -0.75%

Rating Summary:
    20 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Nomura Securities analyst Adam Ilkowitz boosted his price target on Neutral-rated T-Mobile US, (NYSE: TMUS) from $15 to $23 but is sticking with a Neutral rating following strong results in its debut quarter.

"Mobile US reported 1.1mn pro forma net adds in 2Q13, well ahead of our expectation for 550k and consensus of 446k. Even excluding prepaid-to- postpaid migrations, which we estimate were 100-150k, the 688k postpaid net adds was better than our above-consensus 300k forecast. Greater gross adds and upgrade activity, as subscribers take advantage of the new rate plans, led to pro forma Adj. EBITDA of $1.3bn versus expectations for $1.4bn. We believe the $2.4bn of cash on hand should sustain the company through the next year, though greater receivable balances than expected or tower lease termination payments could create the need for additional capital," Ilkowitz comments.

He added, "We believe this is appropriate given the positive near-term momentum, though we remain conservative in our longer-term forecasting."

The firm lowered FY 2013 EPS from $0.55 to $0.20 and FY 2014 EPS from $0.58 to $0.54.

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 $25.01 yesterday.

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