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Citigroup Remains Positive On T-Mobile, Raises Price Target To $51

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Citigroup Remains Positive On T-Mobile, Raises Price Target To $51

Citigroup has maintained its Buy rating on T-Mobile US Inc (NASDAQ: TMUS), saying it remains confident that the company "continues to take customer and revenue market share in the wireless category."

The brokerage also raised the price target on the stock by $4 to $51, implying an upside of 18.4 percent.

"We continue to believe in our thesis on the company's ability to sustain its share gains by enhancing its value proposition to customers and expanding its addressable market with network enhancements and coverage expansion," analyst Michael Rollins wrote in a note.

Rollins noted, "The promotional environment remains steady and customer handset volumes are down on lower churn and upgrade rates." In addition, T-Mobile broadened its EIP securitization facility, expanding its entry to working capital.

Related Link: Macquarie Initiates Coverage On T-Mobile US At Neutral

The analyst expects investors will once more be able to consider T-Mobile's strategic optionality "as the broadcast spectrum auction progresses and the ability for strategic discussions to resume once the auction ends."

"Over the medium term, we view T-Mobile as attractive to either companies that may be interested to expand into wireless (like cable) or as an in-market consolidator to improve scale (for dish or Sprint if current regulatory constraints ease)," Rollins added.

Meanwhile, Rollins kept his 2016 EPS estimate unchanged at $1.38 (Street: $1.31).

At time of writing, shares of T-Mobile US were down 2.74 percent at $41.90.

Latest Ratings for TMUS

DateFirmActionFromTo
Apr 2021Deutsche BankMaintainsBuy
Mar 2021OppenheimerMaintainsOutperform
Feb 2021Raymond JamesMaintainsOutperform

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