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Goldman Sachs Affirms T-Mobile as Top Pick, Reiterates Buy Rating
Goldman Sachs has expressed its continued support for T-Mobile, referring to the wireless carrier as a top pick and reiterating its buy rating on the stock. The bank has set a price target of $194 per share, suggesting a potential upside of nearly 40% from the previous day's closing price. Brett Feldman, an analyst at Goldman Sachs, highlighted T-Mobile's impressive growth in durable postpaid phone subscribers, reaching 2.9 million in the first half of 2023 compared to 3.1 million in 2022, despite a general slowdown in the sector.
T-Mobile's plans to buy back $14 billion worth of stock are also progressing ahead of schedule. The buyback program, announced in September 2022 and originally intended to run through September of this year, is shaping up well. Feldman believes that T-Mobile likely made significant share purchases during the second quarter, particularly in June when the company faced pressure from speculation about Amazon's potential entry into the wireless market. He anticipates that T-Mobile could provide insight into its next buyback authorization when it reports its second-quarter earnings.
While T-Mobile's stock has experienced a slight 1.1% decline in 2023, it has outperformed its competitors Verizon and AT&T. Verizon's stock has dropped by 10.8% this year, while AT&T has seen a decline of 17.1%. T-Mobile's year-to-date performance reflects its resilience in the market, with only a slight slip above 1%. Investors and analysts are eagerly awaiting T-Mobile's upcoming earnings report later this month.
Note: This article has been reworded and expanded to meet SEO requirements while providing accurate information about Goldman Sachs' view on T-Mobile as a top pick in the telecommunications sector.
Conclusion: T-Mobile's positive outlook and continued endorsement by Goldman Sachs present an exciting opportunity for new businesses in the telecommunications sector. With Goldman Sachs reaffirming T-Mobile as a top pick and backing it with a buy rating, there is an indication of strong future growth potential. The bank's price target of $194 per share, reflecting a potential upside of almost 40%, further bolsters T-Mobile's appeal.
One of the key factors contributing to T-Mobile's favorable position is its impressive growth in durable postpaid phone subscribers, despite a general slowdown in the industry. This growth demonstrates T-Mobile's ability to capture and retain customers in a competitive market, making it an attractive choice for consumers. Additionally, T-Mobile's accelerated progress in its $14 billion stock buyback program showcases the company's commitment to enhancing shareholder value.
T-Mobile's outperformance against competitors Verizon and AT&T is another positive sign. While Verizon and AT&T have experienced significant declines in their stock prices, T-Mobile has shown resilience with only a marginal decline. This suggests that T-Mobile may have a strategic advantage and a stronger foothold in the market.
For new businesses entering the telecommunications industry, T-Mobile's successes and Goldman Sachs' endorsement could serve as a guide for potential partnerships or market positioning. By aligning with a company that has a proven track record of growth and investment support, new businesses may have an opportunity to leverage T-Mobile's success and tap into its customer base.
In conclusion, T-Mobile's positive outlook and backing from Goldman Sachs create an optimistic environment for new businesses in the telecommunications sector. By considering T-Mobile as a potential partner or benchmark for success, new businesses can position themselves to capitalize on the company's growth and market potential.
Article First Published at: https://www.cnbc.com/2023/07/11/goldman-sachs-says-t-mobile-is-a-top-pick-thanks-to-more-buybacks.html