T-Mobile US, (TMUS) PT Lowered to $197 at Benchmark, Remains Buy Rated Citing 'Macro Resilience and High End Consumer Appeal'

Benchmark analyst Matthew Harrigan lowered the price target on T-Mobile US, (NASDAQ: TMUS) to $197.00 (from $205.00) while maintaining a Hold rating.

The analyst comments "We are slightly moderating our T-Mobile price target from $205 to $197 and pushing realization into 2023 even as TMUS continues to behave as a relative safe haven even within a sweepingly broad pan TMT perspective. The mild PT tweak is entirely attributable to revised market valuation parameters under our now 17x normalized Shiller P/E approach, implying the S&P 500 may hover around current levels assuming a recessionary $215 in 2023 earnings. The soft economy is also augmenting TMUS’s value orientation appeal even as active switching is up YoY. This is as T-Mobile’s ARPA/ARPU growth strategy relies on “self- selection” upselling to Magenta Max rather than naked price hikes. There is particular momentum for high-end handsets, especially iPhone 14, as Magenta MAX resonates with consumers. Cost inflation, a significant overall market concern, is controlled by having significant costs locked into long-term contracts. Mobile’s revealed business plan furthermore does not include upside from mobile edge computing, private networks, and IoT off its 5G advantages."

You May Also Be Interested In

• Brinker Int'l (EAT) PT Raised to $260 at DA Davidson, Neutral Rating Maintained
• Murphy Oil Corp. (MUR) PT Lowered to $43 at KeyBanc
• Brinker Int'l (EAT) PT Raised to $275 at KeyBanc