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Investing.com - TD Cowen has raised its price target on T-Mobile US (NASDAQ:TMUS) to $291.00 from $272.00 while maintaining a Buy rating following the company’s quarterly results. According to InvestingPro data, analysts’ targets for T-Mobile range from $200 to $305, with the company currently trading at $248.42.
T-Mobile reported strong performance with notable phone subscriber additions, prompting the company to raise its guidance for EBITDA, phone additions, and free cash flow (FCF). The company’s current EBITDA stands at $32.08 billion, with a healthy gross profit margin of 63.6%. The EBITDA guidance increase was described as "muted" due to planned second-half investments.
TD Cowen noted that T-Mobile’s results demonstrate that its "best network, best value advantage works in any environment for outsized industry growth and FCF durability," which justifies the premium multiple assigned to the stock. InvestingPro analysis reveals T-Mobile as a prominent player in the Wireless Telecommunication Services industry, with strong returns over the last decade. Additional insights are available in the comprehensive Pro Research Report, covering what really matters for informed investment decisions.
The firm also highlighted T-Mobile’s recently announced wholesale agreement with Cable for business accounts with fewer than 1,000 lines, targeting smaller businesses. This arrangement is viewed as beneficial for both parties.
According to TD Cowen, this partnership represents a "win-win" scenario as T-Mobile has limited exposure in the small business segment, while Cable companies have achieved "meaningful success downstream" with over 40% SMB market share.
In other recent news, T-Mobile reported positive first-quarter results for 2025, with a slight increase in revenue and EBITDA. The company also experienced better-than-expected gains in fixed wireless access and prepaid customers, while postpaid phone additions were in line with expectations. Despite these results, TD Cowen reiterated its Buy rating on T-Mobile, setting a price target of $272.00 and highlighting it as one of the firm’s top investment ideas. Meanwhile, KeyBanc Capital Markets downgraded T-Mobile to Underweight, citing concerns about the company’s fiber infrastructure in a competitive market. BofA Securities reinstated coverage with a Neutral rating and a price target of $255.00, pointing to T-Mobile’s premium valuation and high growth forecasts. Redburn-Atlantic upgraded T-Mobile from Sell to Neutral, noting concerns about market net additions and valuation metrics. Additionally, T-Mobile faces scrutiny from House Democrats over its partnership with the Trump Organization’s mobile service, as lawmakers requested more information from the company. These developments reflect the current dynamics surrounding T-Mobile and its position in the market.
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