BofA raised the firm’s price target on T-Mobile (TMUS) to $240 from $220 and keeps a Buy rating on the shares after the company reported “solid” Q3 results that beat Street estimates for service revenue, core adjusted EBITDA, free cash flow, and post-paid phone net additions. The firm bases its price target on a price to forward free cash flow per share multiple that it thinks “best encapsulates T-Mobile’s differentiated shareholder return proposition,” as evidenced by a $50B three-yr share buyback/dividend payout commitment, $20B in additional capacity to enhance shareholder returns, and 8% free cash flow per share growth in 2025, the analyst tells investors.
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Read More on TMUS:
- T-Mobile price target raised to $250 from $230 at JPMorgan
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- T-Mobile (NASDAQ:TMUS) Stock Rises on Strong Earnings and Subscriber Numbers
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