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Investing.com - Benchmark has reiterated its Buy rating and $275.00 price target on T-Mobile US (NASDAQ:TMUS) following the company’s second-quarter results. The stock has shown remarkable momentum, gaining nearly 9% in the past week and trading at a PEG ratio of 0.57, suggesting attractive valuation relative to its growth rate. InvestingPro data reveals the company maintains strong financial health with a current ratio of 1.21.
The research firm highlighted T-Mobile’s "breakout" Q2 performance, which led to increased 2025 guidance and demonstrated continued network and strategic momentum for the "Uncarrier." With annual revenue of $84.05B and an impressive gross margin of 63.68%, T-Mobile continues to demonstrate its market strength as a prominent player in the wireless telecommunications sector.
T-Mobile raised its forecast for postpaid customer additions to 6.1-6.4 million, a significant 0.5 million increase at the midpoint from the previous guidance of 5.5-6.0 million. The company now expects postpaid phone gains of 2.95-3.1 million.
Benchmark expressed confidence that T-Mobile’s network advantages, combined with growth potential in non-top 100 U.S. markets and corporate users, will enable the company to maintain its growth trajectory and pricing power despite intense competition in the U.S. mobile market.
The firm also noted T-Mobile’s advancing technology and marketing relationships, including Tuesday’s announcement of a Mobile Virtual Network Operator (MVNO) agreement with the two largest U.S. cable companies to address mid-market wireless business customers.
In other recent news, T-Mobile reported strong quarterly results, highlighting significant phone subscriber additions. This performance led the company to increase its guidance for EBITDA, phone additions, and free cash flow, although the EBITDA guidance rise was described as "muted" due to planned investments in the latter half of the year. Meanwhile, TD Cowen raised its price target for T-Mobile to $291, maintaining a Buy rating in response to these results. In contrast, KeyBanc Capital Markets downgraded T-Mobile to Underweight, citing concerns about the company’s fiber infrastructure, which they believe puts it at a disadvantage in a competitive market. BofA Securities reinstated coverage of T-Mobile with a Neutral rating and a $255 price target, noting the company’s premium valuation and high institutional ownership. Additionally, Redburn-Atlantic upgraded T-Mobile’s stock from Sell to Neutral, setting a price target of $228, despite concerns about potential slowdowns in market net additions. T-Mobile is also facing scrutiny from House Democrats regarding its partnership with the Trump Organization’s new mobile service, Trump Mobile. The inquiry focuses on T-Mobile’s involvement with the service, which includes a $499 smartphone offering.
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