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T-Mobile: Analysts Raise Target Prices after Q2 Results

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On Tuesday, T-Mobile (TMUS) closed at $77.28, which was 1.4% higher than its previous closing price, 9.3% lower than its 52-week high of $85.22, and 28.9% higher than its 52-week low of $59.96. The company’s market cap is $66.0 billion.

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T-Mobile’s stock returns

Based on T-Mobile’s closing price on Tuesday, the company has reported returns of -4.9% in the last five trading days, 1.4% in the trailing one-month period, and 16.6% in the trailing 12-month period. The company has reported returns of 21.5% since the beginning of 2019. T-Mobile has risen 62.3% in the last three years and 162.2% in the past five years.

Analysts’ target prices

This week, Raymond James and RBC raised their target prices for T-Mobile stock from $86 to $94 and $80 to $87, respectively. Similarly, Guggenheim raised its target price for the stock from $85 to $95 on July 30.

According to analysts’ consensus, T-Mobile stock has a mean target price of $88.37 and a current market price of $77.28, which suggests upside potential of 14.4% in the next 12 months. The median target price was $93.00 on Tuesday. Among the 21 analysts tracking T-Mobile, 18 recommended a “buy,” three recommended a “hold,” and none recommended a “sell.”

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Analysts raised their target prices following T-Mobile’s continued strong operating results. In addition, the T-Mobile–Sprint merger is nearing completion. The Department of Justice officially approved the $26.5 billion deal in July. To learn more about the T-Mobile–Sprint Merger, read The T-Mobile–Sprint Merger Faces New Challenges.

T-Mobile’s technical levels

Based on the closing price on Tuesday, T-Mobile stock was trading 2.4% below its 20-day moving average of $79.18, 0.4% above its 50-day moving average of $76.95, and 2.9% above its 100-day moving average of $75.08. On the downside, the company’s immediate key support lies near $76.39, while $77.74 could act as an immediate key resistance level on a daily basis. The company’s 14-day RSI (relative strength index) was 43, which suggests that investors are neutral towards the stock.

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Financial performance

In the second quarter, T-Mobile reported consolidated revenues of $11.0 billion—a rise of 3.9% YoY (year-over-year) and $152 million below the consensus estimate. The company reported a consolidated adjusted EBITDA of $3.5 billion—a rise of 7.1% YoY.

T-Mobile also reported an adjusted EPS of $1.09—a rise of 18.5% YoY and $0.12 better than the consensus estimate of $0.97. Read T-Mobile: A Look at Q2 Results as It Awaits Merger Approval to learn more.

Analysts expect T-Mobile’s net revenues to see YoY changes of 4.7% to $11.35 billion in the third quarter and 4.2% to $11.92 billion in the fourth quarter. Analysts also expect the company’s adjusted EPS to see YoY changes of 5.4% to $0.98 in the third quarter and 25.3% to $0.94 in the fourth quarter.

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