Analyst Michael Rollins from Citi maintained a Hold rating on T Mobile US (TMUS – Research Report) and keeping the price target at $268.00.
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Michael Rollins has given his Hold rating due to a combination of factors affecting T-Mobile US’s current and future performance. The company has been engaging in increased promotional activities in the postpaid market, which is expected to boost customer acquisition but may also lead to a slight dilution in EBITDA for the second quarter of 2025. Although T-Mobile is anticipated to achieve postpaid phone net additions slightly above the consensus, the elevated promotional costs are likely to result in EBITDA figures that fall just short of market expectations.
Furthermore, while T-Mobile is projected to maintain a solid growth trajectory with a 5%+ EBITDA growth for 2025, the competitive landscape is expected to remain tight, potentially limiting the opportunities for significant financial outperformance. The cautious investor sentiment around phone net additions and the slightly lower-than-expected free cash flow also contribute to the Hold rating. Rollins suggests that the company’s organic financial performance might not see substantial improvements unless there are changes in market conditions or pricing strategies.
In another report released on June 10, Bernstein also maintained a Hold rating on the stock with a $265.00 price target.
TMUS’s price has also changed slightly for the past six months – from $229.470 to $230.990, which is a 0.66% increase.