T-Mobile shares cause concern
2023.01.03 08:59
T-Mobile shares cause concern
Budrigannews.com – (NASDAQ:) T-Mobile After Wolfe Research analysts lowered the rating from Outperform to Peer Perform, shares are moving lower before the market opens on Tuesday.
Although they acknowledge that T-Mobile “remains a great story,” they outlined a number of concerns that suggest subdued TMUS share performance.
Specifically, they focus on: a “fair but full” consensus, long-term capital requirements for home Internet, a slowing industry subscriber growth rate, diminishing Sprint churn benefits, and downside risk in the multiple
“Selling fundamental administrations through many billions of dollars of PP&E to countless clients, telecom organizations are incredibly steady.
And despite having low betas, telecom stocks are subject to periods of feasting and famine due to competitive change and forward-looking valuation multiples,” the analysts elaborated in a client note.
“The lens through which we downgrade TMUS is that incremental forecast changes can have surprisingly large impacts on relative performance,” they added.
In addition, the analysts lowered their subscriber and EBITDA forecasts for 2023 and the longer term to levels that are now below or in line with consensus.
In 2022, T-Mobile’s stock closed up more than 20%.
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