T-Mobile stock rating reiterated at Buy by TD Cowen, remains Top Pick

Investing.com - TD Cowen has reiterated its Buy rating on T-Mobile US (NASDAQ:TMUS) with a price target of $263.00, according to a research note published Monday. The target represents significant upside potential from the current price of $208.07, with InvestingPro data indicating the stock is trading below its Fair Value.

The wireless carrier has been designated as a "Top Pick" by TD Cowen, with the firm highlighting T-Mobile’s recent performance that included better-than-expected phone subscriber additions and fixed wireless access (FWA) subscriber growth. This performance has contributed to T-Mobile’s solid 7.3% revenue growth over the last twelve months.

T-Mobile also posted a modest EBITDA beat in its latest quarterly results and raised its guidance for 2025, though TD Cowen noted that the EBITDA guidance increase effectively represents a fourth-quarter guidance reduction when accounting for the third-quarter performance and USM contributions. The company’s EBITDA stands at $32.56 billion for the last twelve months.

The research firm acknowledged mounting industry concerns for a more challenging 2026 wireless market, citing T-Mobile’s earnings alongside T’s results and the recent CEO change at Verizon.

Despite these industry headwinds, TD Cowen emphasized that T-Mobile maintains solid free cash flow conversion and retains competitive advantages with what the firm described as "best network-best value," making it the preferred stock in the current high-volume wireless environment.

In other recent news, T-Mobile’s third-quarter 2025 results have drawn significant attention from various financial analysts. The company reported record postpaid net additions and improved core EBITDA, leading to an increased 2025 guidance for net additions, EBITDA, and free cash flow. JPMorgan reiterated its Overweight rating with a $300 price target following these strong results. However, TD Cowen lowered its price target to $263 due to competitive concerns, despite maintaining a Buy rating. Meanwhile, Tigress Financial raised its price target to $310, citing T-Mobile’s advancements in AI initiatives and 5G network expansion. Benchmark also reiterated a Buy rating, emphasizing the company’s potential to outperform other mobile carriers. In a strategic move, T-Mobile announced a partnership with CNN to enhance mobile journalism through its SuperMobile plan, offering continuous connectivity for live broadcasting. These developments highlight the company’s ongoing efforts to strengthen its market position and expand its technological capabilities.

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