BofA Securities Reinstates T-Mobile US, (TMUS) at Neutral

BofA Securities analyst Mike Funk reinstates coverage on T-Mobile US, (NASDAQ: TMUS) with a Neutral rating and a price target of $255.00.

The analyst comments "We reinstate coverage of T-Mobile at Neutral (see our Industry note). A premium valuation, relatively high institutional ownership, and record high growth forecasts leave limited room for upside. TMUS has led the industry in post-paid phone net add share, revenue and EBITDA growth, and FCF expansion. However, we believe TMUS is most likely to follow cable companies with more competitive pricing and promotional offers based on the company’s commitment to its highest ever postpaid net addition guidance of 5.5-6mn and the importance of this metric to investors. The company could be caught in a Catch 22. It either follows cable down the path of price and promotion and sacrifices ARPU growth and profit or it loses gross add share and potentially misses its north star metric of net adds."

For an analyst ratings summary and ratings history on T-Mobile US, click here. For more ratings news on T-Mobile US, click here.

Shares of T-Mobile US, closed at $240.75 yesterday.

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