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Investing.com - Goldman Sachs has initiated coverage on T-Mobile US (NASDAQ:TMUS) with a Buy rating and a price target of $286.00, according to a recent research note. The stock currently trades at $251.99, showing strong momentum with a 28.6% return over the past year. According to InvestingPro analysis, the company maintains a "GOOD" financial health score of 2.9.
The firm views T-Mobile as well-positioned for growth, noting it is the second-largest mobile network operator in the US and a relatively new entrant in the broadband market with its fixed wireless access product and wireline broadband through joint ventures including Metronet and Lumos. InvestingPro data shows impressive revenue growth of 6.27% over the last twelve months, with a robust 13% revenue CAGR over the past five years. InvestingPro subscribers have access to 7 additional key tips about T-Mobile’s market position and growth potential.
Goldman Sachs projects T-Mobile will achieve an industry-leading 7% EBITDA 5-year compound annual growth rate, reflecting the company’s market leadership in mobile and emerging growth in fiber. The firm models 2.4 million average annual postpaid phone net additions from 2025-2029.
The recently completed US Cellular wireless operations acquisition, which closed on August 1, 2025, for $4.3 billion, is expected to drive upside to consensus EBITDA estimates in the third quarter and full-year 2025, with potential for further upside beyond the projected $1.0 billion in cost and capital expenditure synergies.
T-Mobile is expanding its broadband ambitions with goals to pass 12-15 million homes with fiber by 2030 and reach 12 million fixed wireless access subscribers by 2028, compared to its previous target of 7.5 million by 2025.
In other recent news, T-Mobile US Inc. reported strong financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company’s earnings per share reached $2.84, exceeding the analyst forecast of $2.68, while revenue was slightly above expectations at $21.13 billion compared to the anticipated $21.04 billion. In addition to its financial performance, T-Mobile announced leadership changes, appointing André Almeida as President of Growth and Emerging Businesses, effective September 1, 2025. Almeida will oversee various segments, including broadband and financial services, and will resign from the board on August 31, 2025. Furthermore, interest has been shown by T-Mobile and Elon Musk’s Starlink in acquiring spectrum from EchoStar. This interest follows AT&T’s agreement to purchase certain wireless spectrum licenses from EchoStar for approximately $23 billion. These developments reflect T-Mobile’s ongoing strategic initiatives and market activities.
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