Wall Street’s view of T-Mobile
In the previous part of the series, we learned about the relative size as well as select valuation metrics of T-Mobile (TMUS). The top four US wireless players include Verizon (VZ), AT&T (T), Sprint (S), and T-Mobile. In this part, we’ll look at some market-centric views and metrics for T-Mobile.
As of February 11, 2016, ~78.6% of analysts surveyed had given “buy” recommendations for T-Mobile, 17.9% had given “hold” recommendations, and ~3.6% had given “sell” recommendations.
In addition, the median target price from Wall Street analysts for the telecom company’s stock was ~$46.5 as of February 11. T-Mobile’s closing price was ~$34.03 on the same day.
Price performance of T-Mobile and peers
As of February 11, 2016, the price changes for TMUS during the past month and the three-month period were in the red. In the past month, the stock’s price has declined ~15.1% as of the same date.
Meanwhile, during the comparable period, the decrease in Sprint’s stock price was ~24.3%. However, the stock prices of the integrated telecom players Verizon and AT&T have increased by ~9.9% and ~6.8%, respectively, in the one-month period as of February 11, 2016.
Instead of direct exposures to US telecom stocks, you can consider getting diversified exposure to the space by investing in the Technology Select Sector SPDR Fund (XLK).
The ETF had invested ~10.5% of its holdings in US telecom companies at the end of December 2015.