T-Mobile upgraded to Outperform at Scotiabank after earnings ‘overreaction’

As previously reported, Scotiabank upgraded T-Mobile (TMUS) to Outperform from Sector Perform with a price target of $277.50, up from $275. Heading into reporting season, there was a generalized fear that the U.S. wireless market was slowing down quickly, but now that Mobile Network Operators and Cablecos have reported, the tally shows industry loading actually “remaining quite healthy” at an annual run rate of around 8.5M, the analyst tells investors. Within this context of a still expanding wireless market, the firm believes the 10% hit that shares suffered last week to be an “overreaction” as it does not see any material information in the company’s results that gives the impression that they have skipped a beat, says the analyst, who notes that the firm’s new 2025 estimates for post paid subscriber loading is at the high end of guidance and its new EBITDA estimate is “actually higher than the high end of the guide.”