Cigna earnings beat by $0.04, revenue topped estimates
On Thursday, Citi analysts increased the price target for T-Mobile US (NASDAQ:TMUS) shares from $254.00 to $268.00, while reiterating a Buy rating on the stock. The adjustment followed T-Mobile’s announcement of strong fourth-quarter results and an optimistic outlook for future growth. InvestingPro data shows that three analysts have recently revised their earnings expectations upward, with analyst targets ranging from $184.95 to $280.00. The stock is currently trading near its 52-week high of $248.15.
The telecom giant reported solid performance in the last quarter, with expectations for improved top-line growth. This includes an increase in phone subscribers and service revenue, as well as better free cash flow (FCF) projections for 2025. T-Mobile’s EBITDA growth guidance remains steady at a 5% year-over-year increase. According to InvestingPro, T-Mobile generated $80.01 billion in revenue and $30.66 billion in EBITDA over the last twelve months, demonstrating its strong market position.
T-Mobile’s strategic initiatives include expanding its market reach through investments in fiber deals and the acquisition of Adtech, aiming to revolutionize the outdoor advertising space. These efforts are part of T-Mobile’s broader strategy to modernize and gain a larger share of the market.
Citi’s updated price target reflects an analysis of T-Mobile’s recent results, its ambitious volume targets, and the potential for increased FCF. The revised target is also supported by updates to the analysts’ discounted cash flow (DCF) model.
T-Mobile’s continued success in capturing industry revenue share, coupled with mid-single digit service revenue growth and favorable FCF generation, underpins Citi’s confidence in maintaining a Buy rating for the company’s shares. The telecom provider’s focus on differentiation and market expansion strategies are key factors in its positive outlook. InvestingPro subscribers can access detailed analysis of T-Mobile’s financial health, including 10+ additional ProTips and comprehensive valuation metrics in the Pro Research Report, helping investors make more informed decisions about this leading wireless telecommunications provider.
In other recent news, T-Mobile has been the subject of significant developments. The telecom giant reported exceeding consensus estimates with postpaid phone net additions of 903,000 and a trailing twelve-month revenue of $80 billion. T-Mobile’s core adjusted EBITDA reached $7.9 billion, surpassing the Street’s forecast. The company has provided forward-looking guidance for 2025, including expectations of postpaid net additions between 5.5 and 6.0 million and a core adjusted EBITDA ranging from $33.1 to $33.6 billion.
In analyst news, BofA Securities and Benchmark analysts maintained a positive stance on T-Mobile, reiterating a Buy rating. However, RBC Capital Markets downgraded T-Mobile from Outperform to Sector Perform, following a reassessment of the valuation model in light of higher interest rates. Citi maintained its Buy rating, forecasting a service revenue growth of approximately 4.5% in the fourth quarter of 2024.
T-Mobile announced the appointment of Srinivasan Gopalan, formerly of Deutsche Telekom (OTC:DTEGY), as its new Chief Operating Officer. The company also launched a new shareholder return program, authorizing up to $14 billion in buybacks and dividends through December 31, 2025. These are among the recent developments in T-Mobile’s journey.
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