Gold rally may be losing steam but no major correction seen: DB
Investing.com - Benchmark raised its price target on T-Mobile US (NASDAQ:TMUS) to $295.00 from $275.00 on Friday, while maintaining a Buy rating on the wireless carrier’s stock. With a market capitalization of $254.58 billion and a PEG ratio of 0.64, InvestingPro data suggests the stock is trading at attractive valuations relative to its growth potential.
The research firm cited T-Mobile’s network advantages as a key factor that should reinforce its marketing edge, especially as consumer and business awareness of its network superiority increases. This strategic position has helped drive revenue growth of 6.27% over the last twelve months, according to InvestingPro data, which also highlights T-Mobile’s GOOD overall financial health score.
Benchmark noted that T-Mobile currently commands approximately a 35% performance edge on iPhone 17 Pro, leveraging its standalone 5G core and advanced 5G transition capabilities.
The firm suggested that T-Mobile can maintain superior key performance indicators even if a slowing economy dampens overall postpaid additions among the top three carriers.
Benchmark’s new $295 price target is based on an S&P 500 relative valuation to growth model, using what the firm described as a "conservative normalized and sustainable 20x Case Shiller P/E for the index."
In other recent news, T-Mobile US, Inc. announced plans to raise $2.8 billion through a public offering of senior notes. This offering includes $800 million in 4.625% Senior Notes due 2033, $1 billion in 4.950% Senior Notes due 2035, and $1 billion in 5.700% Senior Notes due 2056. The company intends to use the proceeds to refinance existing debt or for general corporate purposes. In a significant development, Moody’s Ratings upgraded T-Mobile’s backed senior unsecured notes ratings to Baa1 from Baa2, with a stable outlook. Additionally, TD Cowen and Benchmark have reiterated their Buy ratings on T-Mobile amid an upcoming CEO transition. Srinivasan "Srini" Gopalan will assume the role of President and CEO on November 1, 2025, while the current CEO, Michael Sievert, will transition to Vice Chairman. These developments follow Gopalan’s tenure as COO since March 2025 and his previous role as CEO of T-Mobile Germany.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.