T-Mobile US Inc (NASDAQ:TMUS) shares were climbing on Thursday, after the company unveiled a three-year AI-focused plan.

Here are some key takeaways from the company's Capital Markets Day in San Francisco.

Scotiabank On T-Mobile US

Analyst Maher Yaghi reiterated a Sector Outperform rating while raising the price target from $197.00 to $215.50.

T-Mobile detailed its growth plans for the next three years, the financial output of which "looks impressive with continuation of leading wireless subscriber loading, service revenue growth and FCF growth compared to US peers," Yaghi said in a note.

The plan is focused on improving customer experience, unlike many telecom companies that have made cost-cutting their main focus, he added.

"We believe the expected 5% CAGR service revenue growth up to 2027 and the 8% Adj. FCF growth metrics, which do not include any of the pending acquisitions already announced, should support further stock upside," the analyst wrote. This should generate "sizable capital returns to shareholders," while still leaving the company with around $20 billion in cash "to further de-lever the balance sheet or undertake additional M&A," he further stated.

Oppenheimer On T-Mobile US

Analyst Timothy Horan maintained an Outperform rating while lifting the price target to $215.

"The company has transformed to the leading wireless carrier in spectrum depth, network performance, growth, and FCF margins, and is taking the lead in GenAI on both networks and CX," Horan wrote in a note. The company aims to "reduce inbound calls by 75% and resolve 100% of upgrades and 50%-plus of activations digitally," he added.  

T-Mobile plans to use OpenAI for its upcoming IntentCX platform to increase customer engagement, the analyst stated. The company has also partnered with NVIDIA Corp (NASDAQ:NVDA) to "accelerate the development of AI-RAN," he further wrote.

Check out other analyst stock ratings.

KeyBanc Capital Markets On T-Mobile US

Analyst Brandon Nispel reaffirmed an Overweight rating and price target of $230.

T-Mobile’s 2027 guidance has "a number of upside levers from the contribution of Metronet, Lumos and US Cellular, plus the execution of ‘Hero Projects’ and growth in underpenetrated Small Markets and Rural, Business and now First Responders," Nispel said.

Goldman Sachs On T-Mobile US

Analyst James Schneider maintained a Buy rating and price target of $205.

T-Mobile has "ambitious targets" for broadband growth" and announced both revenue and cost initiatives around AI, Schneider said. Management is guiding to 2027 Service Revenue of $75-$76 billion and adjusted EBITDA of $38-$39 billion, ahead of consensus of $74.2 billion and $37.9 billion, respectively, he added.

While the company's financial guidance was "broadly in line with elevated expectations heading into the event," it was modestly disappointing for capital returns, the analyst stated. "We came away from the event with increased confidence in the sustainability of T-Mobile's growth trajectory, particularly with respect to its broadband initiatives," he further wrote.

RBC Capital Markets On T-Mobile US

Analyst Jonathan Atkin reiterated an Outperform rating and price target of $200.

The company announced a new shareholder return program through 2027 worth $80 billion, Atkin said. It will use $10 billion to "fund all announced transaction, including USM, Lumos, Metronet, and spectrum payments," he stated.

T-Mobile has allocated $50 billion for share buybacks and dividends, "with dividend per share growth in the double digits," the analyst stated. He added, however, that $20 billion has been set aside as "a buffer for acquisitions and deleveraging apart from buybacks."

TMUS Price Action: Shares of T-Mobile US had risen by 1.80% to $200.22 at the time of publication on Thursday.

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