T-Mobile Expands 5G Coverage; Street is Bullish

T-Mobile released preliminary fourth quarter and full-year 2020 results yesterday that highlighted postpaid net additions of 5.5 million customers for the year. This represents the highest increase in postpaid customers in the company’s history.

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T-Mobile (TMUS) expanded its 5G network leadership and now reaches 280 million people. The company surpassed its aggressive goal to cover 100 million Americans with Ultra Capacity 5G’s super-fast speeds by the end of 2020, reporting that 106 million Americans now have access to its 5G capabilities.

In comparison, Verizon’s Ultra Wideband 5G only covers 2 million people, which further underlines T-Mobile’s dominance in the 5G environment.

“Our focus on bringing unmatched value and experience to customers while building and delivering the nation’s best 5G network paid off with record-breaking results in 2020 (5.5 million new postpaid customers!) – and we continue to be the growth leader in wireless,” said Mike Sievert, T-Mobile CEO.

Sievert added, “Our 5G leadership position is getting stronger every day. We set some huge goals in 2020 that some thought were impossible, but we smashed them. Today, T-Mobile’s high speed Ultra Capacity 5G covers over 50 times more people than Verizon and it’s growing.”

Preliminary fourth quarter revenue beat analyst expectations of $19.86 billion, coming in at $19.91 billion, while earnings per share of $0.4823 missed the Street’s $0.4848 call. (See TMUS stock analysis on TipRanks)

Yesterday, Oppenheimer analyst Timothy Horan assigned a Buy rating on T-Mobile, setting his price target at $160. This implies upside potential of around 22% from current levels.

Horan believes that TMUS is building the only true 5G network on 80MHz of this spectrum and has a two-year-or-so market advantage over its competitors with a 10x improvement in speed.

Consensus among analysts is a Strong Buy based on 14 Buys and 2 Holds. The average price target of $146.13 suggests around 11% upside potential over the next 12 months.