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On Tuesday, Tigress Financial Partners maintained a bullish stance on T-Mobile US (NASDAQ:TMUS), raising the company’s 12-month price target to $305 from a previous target, while reiterating a Buy rating. Currently trading at $241.59, T-Mobile has demonstrated impressive momentum with a 46% return over the past year. The firm cited T-Mobile’s effective customer acquisition strategies and strong growth prospects as the basis for the increased price target. According to InvestingPro data, analysts maintain a bullish consensus, with 5 analysts recently revising their earnings estimates upward.
The firm’s analysts highlighted T-Mobile’s successful marketing initiatives and ultra-high-speed network as key drivers of the telecom giant’s customer growth. They also praised the value provided by T-Mobile’s customer offerings, which they believe will continue to spur revenue and cash flow increases, ultimately enhancing shareholder value. The company’s financial metrics support this outlook, with InvestingPro showing robust revenue growth of 5.3% and an impressive gross profit margin of 63.9%.
Tigress Financial Partners pointed out T-Mobile’s recent performance, noting the company’s growth in both wireless and wireline subscribers. The expansion of broadband services and strategic acquisitions have also been beneficial, according to the firm. Moreover, T-Mobile’s investments in AI-driven technologies are expected to further improve network performance and customer experience. InvestingPro analysis reveals the company maintains a healthy financial position with a "GOOD" overall score, supported by strong cash flows and solid return metrics.
The analysts at Tigress Financial Partners also mentioned T-Mobile’s plans to broaden its coverage with T-Satellite service and the use of AI to push the boundaries of communication technology. The Magenta Advertising Platform was recognized for its ability to connect advertisers with consumers through data insights, which is seen as another avenue for value creation.
In conclusion, Tigress Financial Partners sees T-Mobile’s strategy of deploying cash and cash flow towards capital investments, acquisitions, and debt reduction as a positive move. The firm also commends T-Mobile’s efforts to return value to shareholders through share repurchases and dividends, reinforcing the telecom company’s strong investment potential. With a PEG ratio of 0.57 and trading at current levels relative to its Fair Value, T-Mobile presents an interesting opportunity for investors. For deeper insights into T-Mobile’s valuation and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, T-Mobile US Inc. reported a strong first quarter of 2025, surpassing both earnings and revenue forecasts. The company posted an earnings per share of $2.58, exceeding the forecasted $2.47, while revenue reached $20.89 billion, beating expectations of $20.68 billion. T-Mobile set a Q1 record with $4.4 billion in adjusted free cash flow and recorded significant growth in postpaid service revenues. The company also launched its new 5G Advanced network and innovative service plans, contributing to its robust performance. Despite these positive results, T-Mobile’s stock experienced a decline in after-hours trading. Additionally, T-Mobile completed its transaction with Lumos, setting the stage to launch T Fiber later this quarter. This move aligns with T-Mobile’s strategic initiatives to expand its broadband services. Analysts from firms like Morgan Stanley (NYSE:MS) and BNP Paribas (OTC:BNPQY) have shown interest in T-Mobile’s fiber strategy and its potential impact on future growth.
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