- T-Mobile is up 1.7% in action after preliminary Q4 results of 1.7M net subscriber adds despite a significantly hotter competitive environment.
- Morgan Stanley has reiterated its Overweight rating off those results. Postpaid phone net additions in particular came in ahead of the firm's expectations - notable not only amid the heightened competitive environment, but with a switching pool that was diminished by the pandemic.
- It also points to a modest increase in churn, given the inclusion of the Sprint customer base, and says second-half postpaid phone net adds are a positive indicator for the near year. The firm has a $143 price target, implying 7% upside.
- KeyBanc is also positive on the results, saying the numbers beat its expectations as well. It's reiterating its Overweight rating and a price target of $135.
- It says read-throughs from T-Mobile's results include a potential risk to Verizon (VZ +0.7%) subs, and potential upside for AT&T (T +0.4%).