T-Mobile US (NASDAQ: NASDAQ:TMUS) has received an optimistic update from TD Cowen, with the firm increasing the mobile carrier's price target to $250 from the previous $216.
This adjustment comes in conjunction with the firm's sustained Buy rating on the stock.
The upgrade was prompted by T-Mobile's strong performance in the third quarter of 2024. The company reported exceeding expectations on several key financial metrics, including EBITDA, revenue, and free cash flow (FCF).
Additionally, T-Mobile surpassed forecasts with its postpaid phone additions, which were supported by low customer churn and an average revenue per user (ARPU) that also beat estimates.
TD Cowen highlighted T-Mobile's recent success, noting the company's ability to outperform in the wireless market. The firm recognized that while the market's valuation is becoming more stretched, T-Mobile still has a significant opportunity for continued growth in the wireless sector over the next few years.
The analyst from TD Cowen also mentioned the company's updated outlook for 2024, which has been slightly improved. This revised guidance suggests T-Mobile is on a positive trajectory with its business operations and financial health.
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