|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||60.56 - 61.04|
|52 Week Range||46.49 - 68.88|
|PE Ratio (TTM)||25.82|
|Dividend & Yield||0.00 (0.00%)|
|1y Target Est||N/A|
SunTrust Robinson Humphrey's Greg Miller and his team take a look at the potential for a merger between Sprint (S) and T-Mobile (TMUS). Spoiler alert: They're "highly skeptical." Miller writes that there seem to be leaks about a potential deal nearly daily, although he doesn't expect anything to come out before an official announcement, which may happen as soon as third-quarter earnings. AT&T (T), Verizon (VZ) and the new combined company, but a negative for the tower industry, including companies like American Tower (AMT), Crown Castle (CCI), and SBA (SBAC), which would see its pool of four major customers shrink to three. He warns that a deal could eliminate more than the 7%-8% of overlapping cell sites, and despite a "flurry" of initial activity, be a long-term headwind for the tower group.
As of October 11, of the 29 analysts actively tracking T-Mobile stock, 21 have rated the stock as a “buy,” while one has rated the stock as a “sell.”
On October 11, T-Mobile's forward EV-to-EBITDA multiple was 6.94x, compared with AT&T's, Sprint's, and Verizon's multiples of 6.62x, 5.22x, and 6.84x, respectively.
Wall Street analysts foresee 625,000 postpaid phone net customer additions for T-Mobile in 3Q17, excluding customers in its DIGITS plan.
Short interest is low for TMUS with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. ETFs that hold TMUS had net inflows of $442 million over the last one-month.
While it is common for companies not to unveil divestitures during merger announcements, T-Mobile's and Sprint's approach shows that the companies plan to enter what could be challenging negotiations with U.S. antitrust and telecommunications regulators without having made prior concessions.
The T-Mobile and Sprint merger appears to be on track, with Nikkei reporting that Sprint’s parent company Softbank has reached a broad agreement to merge Sprint with T-Mobile U.S., while noting that a deal could be announced as early as this month.
Analysts forecast that T-Mobile’s EPS (earnings per share) will reach $0.45 in 3Q17, compared with its EPS of $0.42 in 3Q16.
Apple, Aramark, T-Mobile, Sprint, Viacom, Charter Communications, JD.com, Alibaba and TransEntrix are among the stocks to watch.
T-Mobile U.S. and Sprint plan to announce a merger without any immediate asset sales, according to people familiar with the matter. Fred Katayama reports.