T-Mobile (TMUS) Upgraded as Subscriber Growth Outlook Improves

T-Mobile US Inc. (NASDAQ:TMUS) ranks among the best telecom stocks to invest in. On December 2, KeyBanc lifted T-Mobile US Inc. (NASDAQ:TMUS) from Underweight to Sector Weight, suggesting a neutral risk/reward profile at present prices. The firm continues to identify structural, cyclical, and company-specific problems for T-Mobile US Inc. (NASDAQ:TMUS), though it thinks these risks have been addressed in the stock’s price.

The next major trigger for the stock, according to KeyBanc, will be T-Mobile’s fourth-quarter earnings release and the company’s 2026/2027 projection. The firm anticipates that T-Mobile US Inc. (NASDAQ:TMUS) can expect an acceleration in organic growth rates following its anticipated investments in 2025.

Most notably, T-Mobile US Inc. (NASDAQ:TMUS) raised its FY25 outlook for postpaid net subscriber additions from 6.1-6.4 million to 7.2-7.4 million, an improvement of 1.05 million at the midpoint. The company’s core adjusted EBITDA forecast also rose by $300 million at the midpoint to $33.7-33.9 billion, while net cash generated through operations guidance was enhanced by $600 million to $27.8-28.0 billion. T-Mobile US Inc. (NASDAQ:TMUS) also boosted its capital expenditure plan from $9.5 billion to $10.0 billion, indicating additional investment to support its rising customer base and network growth.

T-Mobile US Inc. (NASDAQ:TMUS) provides wireless communications services in the US, Puerto Rico, and the United States Virgin Islands. The company offers voice, messaging, and data services to postpaid, prepaid, and wholesale & other services customers.

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Disclosure: None. This article is originally published at Insider Monkey.