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Research Alert: CFRA Maintains Strong Buy Opinion On Shares Of T-mobile Us, Inc.

· 02/05/2021 09:52

02:50 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price by $10 to $160, applying an EV/EBITDA multiple of 10.9x to our '21 estimate, a premium to peers, reflecting our view that TMUS will continue to capture market share without sacrificing profitability. We trim our '21 EPS estimate by $0.89 to $2.27 and set '22's at $3.86. TMUS reported Q4 operating EPS of $1.10 vs $0.87, $0.56 above the consensus. Q4 revenue increased 6% sequentially, with 0.3% growth in service and a 21% increase in equipment. Postpaid phone net additions came in at 824k, with 84k prepaid customer adds, while postpaid churn rose 13 bps sequentially to 1.03%, which is impressive given the aggressive promotional activity by AT&T and Verizon during the holiday season. TMUS delivered $1.3B in merger synergies in '20, ahead of its initial guidance and expects synergies to more than double in '21. Given these record results in the face of Covid-19 disruptions, we remain confident that TMUS will continue to outperform peers.