BofA on T-Mobile US, (TMUS): 'T-Mobile didn’t go anywhere, but its back baby'
BofA Securities analyst David Barden reiterated a Buy rating and $240.00 price target on T-Mobile US, (NASDAQ: TMUS)
The analyst comments "TMUS reported solid financial and operating results that were ahead of consensus. Postpaid phone net additions of 903k were above our above-Street estimate of 857k. Total service revenue beat both our estimate and the Street with better than forecast wireless ARPU. Core adj. EBITDA of $7.9bn was above Street expectations of $7.8bn. (see Exhibit 1 below). We maintain our Buy rating as TMUS continues delivering solid subscriber and financial growth in a still-healthy industry with record-low facilities-based competition. FCF guidance for 2025 ahead of the Street TMUS shared its 2025E guide of 5.5-6.0mn post-paid net adds, Core adj. EBITDA of $33.1 - $33.6bn (Street @$33.3bn), capex of $9.5bn (Street @ $9.6bn), and free cash flow of $17.3 - $18.0bn (Street @ $17.2bn vs. our $17.7bn). On the call… We expect to learn more about the timing of the planned investment that has been flagged will temporarily slow Core adj. EBITDA growth in 2025E. We also expect TMUS to comment on the timing of its three outstanding acquisitions (LUMOS – early 2025, UScellular – mid 2025, and Metronet – 2025) and discuss its capital return plans for 2025. The conference call is scheduled for 8:00AM ET (webcast)."
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Shares of T-Mobile US, closed at $221.14 yesterday.