Oppenheimer downgraded T-Mobile to Perform amid increased competition

As previously reported, Oppenheimer downgraded T-Mobile (TMUS) to Perform from Outperform and removed the firm’s $300 price target on the shares. The firm thinks the company will have a difficult time beating subscriber and free cash flow estimates after a decade of outsized share gains and margin expansion. Oppenheimer further believes that overall industry subscriber growth is set to slow and will intensify competition. In this regard, Comcast (CMCSK) (CMCSA) has aggressively lowered its broadband prices, and the firm expects Verizon (VZ) to use its $4B in expense savings announced recently to increase handset promotions and contents bundles. Oppenheimer also suspects this intense competition will last a year or two, and ultimately T-Mobile will look to increase prices and slow share gains.