T-Mobile US, (TMUS) PT Raised to $240 at BofA Securities

BofA Securities analyst David Barden raised the price target on T-Mobile US, (NASDAQ: TMUS) to $240.00 (from $220.00) while maintaining a Buy rating.

The analyst comments "TMUS reported solid 3Q24 results that beat Street estimates for service revenue, core adj. EBITDA, free cash flow, and post-paid phone net additions. On the back of the beat, TMUS once again raised guidance slightly with upward mid-point revisions to core adj. EBITDA (+$50mn), net cash from operations (+$150mn), and free cash flow (+$50mn). TMUS continues to outperform expectations with strong momentum. We are raising our price objective to $240 (from $220) based on a price to forward free cash flow per share multiple of 14x 2025E (vs. 11.0x 2025E EV/EBITDA multiple) as we think this metric best encapsulates T-Mobile’s differentiated shareholder return proposition. TMUS’s leading shareholder value creation is evidenced by a $50bn 3-yr share buyback/dividend payout commitment, $20bn in additional capacity to enhance shareholder returns, 8% FCF/sh growth in ‘25E, and a 1.6% yield."

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