Market Overview

T-Mobile Is Credit Suisse's Telecom Pick For 2015

T-Mobile Is Credit Suisse's Telecom Pick For 2015
T-Mobile's CEO Couldn't Be More Excited About The AT&T-Time Warner Deal
John Legere Unleashes Tweetstorm Following T-Mobile Earnings Beat
T-Mobile: Strong Q3 With Typical Catch (Seeking Alpha)

In a recent report, analysts at Credit Suisse outlined their 2015 outlook for telecom stocks. Analysts picked T-Mobile US Inc (NYSE: TMUS) as their top pick in the sector.

Buyout Target

Analysts believe that T-Mobile is the best acquisition target during potential consolidation in the space. After the recent AT&T Inc. (NYSE: T) buyout of DIRECTV (NASDAQ: DTV), competitors such as Verizon Communications Inc. (NYSE: VZ) could feel pressure to consider acquiring T-Mobile.

Even if a potential buyout is blocked due to antitrust concerns, Credit Suisse analysts believe that T-Mobile could be the beneficiary of a significant breakup fee.

Related Link: Morgan Stanley's Bullish Case For U.S. Steel

Potential Upside

Regardless of buyout activity, analysts see improving fundamentals for T-Mobile and the potential for the company to gain market share from competitors. "We believe that T-Mobile’s attractive pricing and improved network will have a sustained positive impact on postpaid subscriber growth."

Credit Suisse has an Outperform rating on T-Mobile and has set a $39.00 price target for the stock. The $39.00 price target represents a 33 percent upside for the stock from current levels. T-Mobile stock has fallen 11.4 percent over the past year. It closed Monday at $29.27.

Other Analyst Action

Back in September 2014, analysts at Argus upgraded T-Mobile stock from Hold to Buy and set a $40 price target. In May, Hudson Square Research reiterated their Buy rating and raised their price target from $33 to $40.

Upcoming Earnings

The next potential catalyst for T-Mobile could be its Q4 2014 earnings report expected to be released on February 19. Analysts are forecasting earnings per share of $0.01.

Latest Ratings for TMUS

Aug 2016Wells FargoUpgradesMarket PerformOutperform
Aug 2016Buckingham ResearchMaintainsBuy
Aug 2016BTIG ResearchMaintainsBuy

View More Analyst Ratings for TMUS
View the Latest Analyst Ratings

Posted-In: Credit SuisseAnalyst Color Long Ideas Price Target Analyst Ratings Trading Ideas Best of Benzinga


Related Articles (TMUS)

View Comments and Join the Discussion!