Telecom analysts expect T-Mobile to lead the way

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Wells Fargo analyst Eric Luebchow recommends staying long T-Mobile US, Inc (NASDAQ: TMUS ) (Overweight; Price Target $160) in its third-quarter earnings as the only operator it believes can deliver significant subscriber growth and EBITDA growth.
He believes TMUS would have a positive impact on both the mobile and FWA subsystems in the third quarter, with a $3 billion
He takes a cautious stance Verizon Communications Inc (NYSE: VZ ) (equal weight; price target cut to $40 from $48) as weak subscriber results will likely make it difficult to achieve the target long-term guidance of +3% revenue growth.
He is increasingly optimistic AT&T Inc (NYSE: T ) (equal weight, price target cut to $17 from $22) subscribers’ outlook based on a strong Q3, but still questioned the company’s EBITDA and FCF outlook for 2023, which is likely to be lower than the company’s guidance .
He also included some recent findings from Roger Entner of Recon Analytics, who he interviewed on October 6.
Truist analyst Greg P. Miller said that approaching the 3rd quarter. He slightly lowered most carriers’ forecasts for the 22 EPS season amid continued intense competition and a slowing economic environment. However, he continues to recommend TMUS and VZ as one for acquisitions, while positioning the other for sustainable growth with an industry-leading network.
Due to continued coverage expansion, corporate penetration and strong FWA results, he expects TMUS to lead the way, even if challenging corporate performance contrasts with the S&P’s relative performance.
He reiterated “Buy” on TMUS with a $175 price target.
He remains constructive on the name’s strong growth outlook given its improved 5G network coverage, speed performance and industry-leading subscriber figures.
Miller reiterated Buy on VZ with a $58 price target.
He continues to expect VZ to see a loss of handsets in the third quarter, despite changes in plans to attract new users to bring their own devices.
Miller reiterated that he would hold AT&T, targeting $21.
Over the past few quarters, the operator has seen an accelerated growth in the number of subscribers. But as he began to feel the effects of the slowing economy, he adjusted AT&T’s estimates modestly.
Price Action: TMUS shares were down 1.09% at $137.90 at the last check on Friday.

Latest TMUS Ratings

Date	Company	Action	To
in 2022 February	Morgan Stanley	Maintains	Overweight
in 2022 February	Deutsche Bank	Maintains	Buy
in 2022 January	Morgan Stanley	Maintains	Overweight

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