Loop Capital Is Bullish On T-Mobile Over AT&T, Verizon - Read Why
Loop Capital analyst Stephan Bisson initiated coverage of T-Mobile US Inc (NASDAQ: TMUS) with a Buy and $160 price target, indicating a 27.4% upside.
Bisson believes T-Mobile's network aids its competitive position and expects it to produce "continued outperformance in subscriber additions and the financials."
T-Mobile's network reaches tens of millions more people than AT&T Inc (NYSE: T) and Verizon Communications Inc (NYSE: VZ), adding that T-Mobile's Ultra Capacity 5G has "significantly" more coverage than AT&T or Verizon's comparable options.
Bisson initiated coverage of AT&T with a Hold and $30 PT, implying a 10.4% upside.
Once the company's deals are closed, AT&T will essentially be a wireless and wireline communications company with revenue and EBITDA growth trends growing "relatively slowly" at 1.7%-1.8% annually, Bisson notes.
The $30 price target bases on a $26 per share value for the remaining company and $4.50 per share value for the 71% equity AT&T shareholders will own of WarnerBros-Discovery.
Bisson initiated coverage of Verizon with a Hold rating and $57 PT, suggesting a 4.97% upside.
Verizon has "steadily growing" wireless assets and a "potentially exciting future" with 5G enabling new products like mobile edge compute and fixed wireless broadband, Bisson notes.
However, the company's current growth isn't fast enough to drive multiple expansion, and the upside to numbers from mobile edge compute is challenging to quantify.
Bisson thinks investors "will have time to see the products develop before diving in."
Price Action: T shares traded higher by 0.44% at $27.33, while VZ traded higher by 0.15% at $54.34 in the premarket session on the last check Tuesday. TMUS closed Monday's session at $125.63.
Latest Ratings for TMUS
Sep 2021 | Loop Capital | Initiates Coverage On | Buy | |
Aug 2021 | Keybanc | Downgrades | Overweight | Sector Weight |
Aug 2021 | Morgan Stanley | Maintains | Overweight |
View More Analyst Ratings for TMUS
View the Latest Analyst Ratings
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