Mobile communications company T-Mobile (TMUS) notched up in Monday afternoon’s trading after reports that it picked up a new prize: the Vistar Media outdoor advertising operation. The move is expected to provide some extra firepower for T-Mobile’s marketing, and gave T-Mobile a modest boost in trading.
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T-Mobile paid, based on a Reuters report, around $600 million in an all-cash deal to get its hands on Vistar, which would give it greater access to the “digital out of home” (DOOH) advertising market. Not surprisingly, companies are moving away from billboards as advertisements and instead are looking to “more creative and engaging” options.
Getting Vistar in gives T-Mobile an impressive level of access; based on a report from GroupM, a media investment firm, DOOH will account for 42% of all out of home advertising revenue in 2025. And T-Mobile will now have 1.1 million digital screens to its credit. Chief T-Ads officer, JP Colaco, noted that the move gives advertisers the ability to “…easily place their ads where they know their audience will be.”
Welcome News
Meanwhile, Phone Arena brought out word that the partnership between T-Mobile and SpaceX has finally borne fruit, and a beta program that gives T-Mobile subscribers access to the Starlink constellation and its direct-to-cellular potential is now in play. The program currently only has limited slots, but the fact that it has advanced from “vague concept” to “actually signing some people up” is a winner all the same.
Finally, a report from CNET detailed how 5G home internet is working out for end users. The good news there is that, for the most part, it does the job, and better than DSL. Though it does have a few unexpected “quirks,” like signal strength variability and speeds that are not always the best, depending on the day someone tests the connection speed.
Is T-Mobile Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TMUS stock based on 13 Buys and six Holds and one Sell assigned in the past three months, as indicated by the graphic below. After a 32.83% rally in its share price over the past year, the average TMUS price target of $247.88 per share implies 15.82% upside potential.
