T-Mobile rises as Morgan Stanley reinstates as top pick after recent sell-off
Justin Sullivan
T-Mobile (NASDAQ:TMUS) shares rose more than 3% in early trading on Thursday as Morgan Stanley reinstated the telecom giant as one of its top picks.
Analyst Simon Flannery, who has an overweight rating and per-share price target of $178 on T-Mobile (TMUS), noted that the stock has been "range bound" for months, with the stock recently falling below the $140 to $150 range, which could provide an opportunity for investors.
"The recent weakness in the sector does create an opportunity for T-Mobile to execute the remainder of their $14 [billion] buyback program at lower prices, creating more value for shareholders," Flannery wrote in an investor note, adding the company has low leverage, strong free cash flows, recurring revenues, network leadership and growing market share. 
Flannery also modestly increased his 2023 estimates, boosting his second-quarter postpaid phone additions to 766,000, up from 622,000, while also boosting his adjusted EBITDA estimate for the year.
"We expect the stock to break out of this range over the next few months driven by operating and technical factors," Flannery added. 
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