Analysts turn bullish on T-Mobile on its network edge

Published 16/10/2025, 16:08
© Reuters.

Investing.com -- T-Mobile US was upgraded at Wells Fargo which said the stock was its top carrier pick.

Wells Fargo upgraded T-Mobile to Overweight from Equal Weight and raised its price target to $260, saying the company offers higher free cash flow growth over the next three years, sustained network leadership and greater capital return potential through buybacks.

It expects T-Mobile’s free cash flow per share to grow 15% from 2025 to 2027, while slowing at AT&T and Verizon.

Wells also cited T-Mobile’s advantage in spectrum holdings and faster network rollout, giving it a lead in coverage and speeds.

"Even if Verizon does become more promotional... underpenetrated segments contributes to TMUS’s market-leading postpaid phone," analysts say. 

Postpaid phone share gains should remain solid, helped by underpenetrated segments such as small markets, enterprise and public sector, Wells Fargo said.

RBC also upgraded the stock on Monday, given strong subscriber growth and benefits from its acquisition of UScellular.

T-Mobile kept up aggressive promotions in the third quarter, including an $800 switcher credit, expanded iPhone launch offers, and new services such as Direct-to-Cell and SuperMobile for businesses.

Analysts said Verizon faces tougher near-term conditions during a CEO transition, while AT&T’s spectrum purchase will weigh on buybacks. That leaves T-Mobile better positioned to deliver industry-leading subscriber and revenue growth.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.