Analyst Note| Michael Hodel, CFA |
T-Mobile posted solid first-quarter results, leading the wireless industry in terms of net customer additions. As is typical, management increased expectations for 2021 versus guidance provided a quarter ago, taking its estimate of customer growth, profitability, and cash flow up. We recently sharply increased our expectations for the firm, pushing our fair value estimate to $130. We don’t expect a significant change to our estimates, and we view the stock as fairly valued.