The comments come as T-Mobile reported better-than-expected second-quarter results, driven by easing competition, improving network quality and the ongoing cost saving initiatives.
The highlights of the results include:
- 1.9 million total net additions
- 890,000 branded postpaid net adds
- 646,000 branded postpaid phone net adds
- 476,000 branded prepaid net adds
- Record-low branded postpaid phone churn of 1.27 percent (down 6 bps quarter-over-quarter and 5 bps year-over-year)
The carrier edged up its 2016 net addition guidance for branded postpaid to 3.4 million to 3.8 million from 3.2 million to 3.6 million and narrowed adjusted EBITDA target to $9.8 billion to $10.1 billion from $9.7 billion to $10.2 billion.
Further, Barclays noted that T-Mobile could achieve $1.5 billion–$1.8 billion in free cash flow in 2016 as the company expects a significant second-half ramp heading into material 2017 growth.
The brokerage raised its current year EPS estimate by $0.02 to $1.34 and next year EPS forecast by $0.10 to $2.07. It also increased the price target on the stock by $1 to $50.
At time of writing, shares of T-Mobile had gained 0.72 percent on the day to $45.97.
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