Analyst Note| Michael Hodel, CFA |
T-Mobile delivered solid third-quarter results amid a competitive environment that remains somewhat challenging. Our $135 fair value estimate is unchanged. While we believe AT&T shares offer better value, T-Mobile is starting to look attractive as well, in our view, amid a broad sell-off in telecom shares in recent weeks. We continue to believe the U.S. wireless industry is healthy, with recent promotional offers importantly revolving around phone offers rather than discounted service. On that point, T-Mobile modestly increased expectations for revenue per postpaid phone customer, expecting this figure to hold steady in 2021 versus 2020 rather than decline slightly.