BofA lowered the firm’s price target on T-Mobile (TMUS) to $220 from $270 and keeps a Neutral rating on the shares. T-Mobile “wrapped up the theme of rational competition and lower device subsidies” for wireless carriers in Q1, but competitive intensity could flare back up as wireless operators and cable companies fight for a shrinking pool of net additions, the analyst tells investors. Industry leading growth is reflected in its peer leading multiple, but competition could increase and limit multiple expansion from current levels as peers execute on strategies to boost growth, the analyst added.
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