Written by Sam Bogda
An analyst from Bank of America reiterated the buy assessment and $175 target price on shares of T-Mobile (NASDAQ 🙂 in a note on Monday.
In a note to clients, the analyst explained that they are updating estimates ahead of the third-quarter report “to reflect the company’s comments provided during conferences and meetings heading into the end of the quarter.”
“TMUS continues to perform well against a clear plan,” the analyst wrote. “It is leveraging its 5G network to grow in 1) small and rural markets, 2) the enterprise sector, 3) fixed wireless access, and 4) sectors within the top 100 markets prioritizing network quality. This month the TMUS board authorized the start of a buyback program Equity. The program targets $60 billion+ by 2025. Initial mandate is $14 billion ($3 billion in 2022; $11 billion in 2023). The majority of TMUS holds.”
BofA slightly lowered its postpaid phone addition net estimate to 835K from 861K, based on slightly lower overall additions.
“We estimate a rate of change of 0.86% which is consistent with management’s comments that annual improvements in Q2 will be similar to Q3 as it operates through the final stages of Sprint integration and higher seasonal market activity. These changes lowered our service revenue estimate to $15.4 billion. From $15.5 billion, our core EBITDA was unchanged at $6.3 billion in the third quarter,” the analyst added.