T-Mobile US (NASDAQ:TMUS) Stock Price Expected to Rise, Scotiabank Analyst Says

Key Points

• Scotiabank raised T-Mobile US’s price target from $212 to $214 and maintained a “sector outperform” rating, implying 43.59% upside from the previous close.
• Analyst sentiment remains broadly positive: T-Mobile has a consensus “Moderate Buy” rating and an average price target of $241.88, despite some brokerages lowering targets or downgrading the stock.
• T-Mobile recently beat quarterly earnings and revenue estimates, reporting $3.22 in earnings per share and $23.58 billion in revenue, up 7.4% year over year.

T-Mobile US (NASDAQ:TMUS - Get Free Report) had its target price hoisted by research analysts at Scotiabank from $212.00 to $214.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has a "sector outperform" rating on the Wireless communications provider's stock. Scotiabank's target price indicates a potential upside of 43.59% from the company's previous close.

A number of other brokerages have also recently issued reports on TMUS. TD Cowen cut their target price on shares of T-Mobile US from $261.00 to $260.00 and set a "buy" rating for the company in a research report on Friday, July 24th. Bank of America raised T-Mobile US from a "neutral" rating to a "buy" rating and set a $220.00 target price on the stock in a research note on Monday, July 6th. Benchmark reduced their target price on T-Mobile US from $295.00 to $280.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Morgan Stanley lowered their target price on T-Mobile US from $260.00 to $230.00 and set an "overweight" rating on the stock in a report on Tuesday, July 7th. Finally, Wolfe Research downgraded T-Mobile US from an "outperform" rating to a "peer perform" rating in a research report on Friday, August 14th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $241.88.

T-Mobile US Price Performance

Shares of NASDAQ TMUS traded up $0.96 during midday trading on Thursday, hitting $149.04. The company had a trading volume of 2,397,377 shares, compared to its average volume of 5,684,914. The company has a quick ratio of 0.83, a current ratio of 0.92 and a debt-to-equity ratio of 1.48. T-Mobile US has a twelve month low of $143.75 and a twelve month high of $224.75. The business has a 50-day simple moving average of $168.32 and a two-hundred day simple moving average of $187.39. The firm has a market capitalization of $159.87 billion, a price-to-earnings ratio of 15.58, a price-to-earnings-growth ratio of 0.91 and a beta of 0.33.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last issued its earnings results on Wednesday, October 28th. The Wireless communications provider reported $3.22 earnings per share for the quarter, topping the consensus estimate of $2.89 by $0.33. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. The company had revenue of $23.58 billion for the quarter, compared to analyst estimates of $23.15 billion. During the same period in the prior year, the business posted $2.41 earnings per share. The firm's revenue for the quarter was up 7.4% compared to the same quarter last year. Equities research analysts anticipate that T-Mobile US will post 11.17 earnings per share for the current year.

Insider Buying and Selling

In other news, CAO Daniel James Drobac sold 772 shares of T-Mobile US stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $178.33, for a total value of $137,670.76. Following the transaction, the chief accounting officer directly owned 35,118 shares of the company's stock, valued at $6,262,592.94. The trade was a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. 0.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On T-Mobile US

A number of hedge funds have recently made changes to their positions in TMUS. First National Bank of Mount Dora Trust Investment Services lifted its holdings in T-Mobile US by 34.8% during the 1st quarter. First National Bank of Mount Dora Trust Investment Services now owns 59,958 shares of the Wireless communications provider's stock worth $12,593,000 after purchasing an additional 15,495 shares during the last quarter. Liontrust Investment Partners LLP grew its holdings in T-Mobile US by 46.0% in the 1st quarter. Liontrust Investment Partners LLP now owns 57,402 shares of the Wireless communications provider's stock valued at $12,056,000 after buying an additional 18,075 shares in the last quarter. Perpetual Ltd increased its position in T-Mobile US by 140.1% during the 3rd quarter. Perpetual Ltd now owns 11,168 shares of the Wireless communications provider's stock worth $1,821,000 after buying an additional 6,517 shares during the period. Plato Investment Management Ltd bought a new position in T-Mobile US during the 2nd quarter worth $5,870,000. Finally, Paralel Advisors LLC acquired a new stake in shares of T-Mobile US during the second quarter worth $1,846,000. Hedge funds and other institutional investors own 42.49% of the company's stock.

Key Headlines Impacting T-Mobile US

Here are the key news stories impacting T-Mobile US this week:

• Positive Sentiment: Q3 earnings beat expectations: T-Mobile reported adjusted earnings of $3.22 per share versus estimates near $2.86–$2.89, while revenue reached $23.58 billion, up 7.4% year over year and above forecasts. Net income rose 27% to approximately $3.5 billion. T-Mobile raises annual free cash flow forecast as premium plans gain traction
• Positive Sentiment: Higher full-year outlook: Strong service revenue, account growth, premium-plan adoption and higher average revenue per account prompted T-Mobile to raise its 2026 free-cash-flow and profitability guidance. Management also highlighted broadband expansion and artificial-intelligence opportunities. T-Mobile Q3 Earnings Call Highlights Growth and Higher Outlook
• Positive Sentiment: Customer trends were favorable: Postpaid growth and premium-plan demand helped lift service revenue and profitability, suggesting T-Mobile’s network, loyalty incentives and new customizable T-Mix plans are resonating with customers. T-Mobile Boosts Profit, Accounts as Network and Offers Resonate
• Neutral Sentiment: Leadership transition: Former CEO Mike Sievert is stepping down from T-Mobile’s board and vice chair role, a planned transition that removes an experienced executive from the company’s formal leadership structure but does not represent an operational change. Mike Sievert steps down from T-Mobile US board
• Negative Sentiment: SpaceX-related competitive risk: T-Mobile’s CEO ruled out an expanded SpaceX MVNO partnership. While this avoids an uncertain deal, SpaceX could eventually build a competing terrestrial network, creating a potential threat to T-Mobile’s wireless position. T-Mobile US CEO quashes SpaceX MVNO talk
• Negative Sentiment: Valuation expectations moderated: KeyCorp reduced its price target from $250 to $240, despite maintaining an overweight rating. Reports that Deutsche Telekom has paused a potential large T-Mobile-related merger may also limit a possible strategic catalyst. KeyCorp T-Mobile price target

T-Mobile US Company Profile

T-Mobile US, Inc NASDAQ: TMUS is a wireless communications company that provides mobile voice, messaging and data services to consumers, businesses and government customers in the United States, Puerto Rico and the U.S. Virgin Islands. Its offerings include postpaid and prepaid wireless plans, connected devices, broadband internet and other communications services.

The company operates a nationwide wireless network, including 5G services, and sells smartphones, tablets, connected devices and related accessories through retail stores, online channels and third-party distributors.

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