T-Mobile stock gains after Guggenheim boosts target

Published: Sept 27, 2018 9:30 a.m. ET

T-Mobile US Inc. TMUS, +2.02% shares are up 0.4% in Thursday morning trading after Guggeneheim analyst Mike McCormack raised his price target on the stock to $85 from $80. He kept his buy rating intact for the stock, which is on Guggenheim's "best picks list." He thinks that consensus estimates for subscriber growth are too low and expects strong results for the third quarter. The company is expected to report results on Oct. 30. "In the longer-term, we believe the cash and earnings generation power of the fastest growing carrier is underappreciated," McCormack wrote. He argued that the stock looks attractive regardless of whether a merger with Sprint Corp. [s; s] takes place, and he thinks that investors are beginning to come around to the idea of that combination after a period of "significant skepticism" at the outset. "Believing in 5G is not a prerequisite to liking the combined company," McCormack wrote. "We think that the synergy story, and continued share taking is enough to get very excited about." T-Mobile shares are up 17% over the past three months, while the S&P 500 SPX, +0.31% has gained 7.9%.

Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails. Sign up here.

Advertisement
Sponsored by

Quote References

  • TMUS
    +1.39 +2.02%
  • SPX
    +8.91 +0.31%

MarketWatch Partner Center