- Benchmark Analyst Matthew Harrigan reiterated a buy T-Mobile US, Inc TMUS and shorten the price target $197 from $205.
- The re-evaluation reflects moving forward with realization into 2023, although TMUS continues to behave as a relatively safe haven even in a broad TMT perspective.
- The slight PT adjustment is entirely due to revised market valuation parameters as part of its now 17x normalized Shiller P/E approach, implying that the S&P 500 could be drifting around current levels on the back of a recessionary $215-on-year gain 2023 out.
- The weak economy increases the attractiveness of TMUS for value orientation, even as active switching increases year-on-year.
- T-Mobile’s ARPA and ARPU growth strategy relies on “self-selection” rather than upselling to Magenta Max rather than naked price hikes.
- There is a special dynamic, especially with high-end cell phones apple inc AAPL iPhone 14 as Magenta MAX resonates with consumers.
- Cost inflation, a major common market problem, is controlled by locking significant costs into long-term contracts.
- In addition, Mobile’s business plan does not include benefits from mobile edge computing, private networks, and IoT alongside its 5G benefits.
- TMUS’ pricing power in relation to 5G and consumer and business customer perceptions is a linchpin for the upward movement of the TMUS share price.
- Given TMUS’ moderate valuation relative to its growth and business momentum, the board’s approval of up to $14 billion in share buybacks makes sense.
- Price promotion: TMUS shares were trading up 1.11% to $135.33 on the latest check Tuesday.
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