T-Mobile: Growth Drivers Yet To Unfold, But The Stock Is Fairly Valued

Nov. 26, 2022 12:20 AM ETT-Mobile US, Inc. (TMUS)2 Comments
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  • Since our BUY call in December last year, the stock has gained over 25%, and it performed better than its peers.
  • The competition has intensified in the mobile market, as competitors are catching up with T-Mobile thanks to the C-band spectrum deployments, and new players enter the competitive landscape.
  • However, T-Mobile's 5G SA in the mid-band spectrum should improve its competitiveness in the consumer and enterprise markets. The mmWave spectrum could pave the way to the private wireless market.
  • Moreover, T-Mobile recently picked up more than 7,000 2.5GHz licenses, mostly in rural areas, that could help the company fill the coverage gaps and provide more capacity for FWA.
  • Yet, as the stock has reached our TP, we believe that it is fairly valued. It is trading at 9x of its forward EBITDA, higher than Verizon and AT&T.

T-Mobile Data Breach Affects 40 Million People

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T-Mobile’s (NASDAQ:TMUS) stock has shown resilience during inflationary pressures and rising interest rates - prompting a major sell-off in the equity market. The stock performed better than the company’s peers (see Figure 2) and hit our 12-month

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Disclosure: I/we have a beneficial long position in the shares of TMUS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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