Wolfe Cuts T-Mobile to Peer Perform as 12.8% Capex Rise Clouds Growth
Updated
Updated · Yahoo Finance · Aug 18
Wolfe Cuts T-Mobile to Peer Perform as 12.8% Capex Rise Clouds Growth
2 articles · Updated · Yahoo Finance · Aug 18
Summary
Wolfe Research downgraded T-Mobile on Aug. 14 from Outperform to Peer Perform, sending the shares lower as it challenged both the carrier’s growth case and its shareholder-return outlook.
277,000 postpaid net account additions in Q2—down 13% from a year earlier—and management’s forecast for about 250,000 in Q3 reinforced concerns that competition is returning to T-Mobile’s core business.
$2.70 billion in Q2 capex, up 12.8%, added to worries that broadband and future 6G spending could squeeze buybacks and lift leverage in the next investment cycle.
T-Mobile still repurchased $2.2 billion of stock and raised adjusted free-cash-flow guidance to $18.4 billion-$18.8 billion, but its roughly 16.7x forward earnings multiple leaves less room for disappointment than AT&T or Verizon.