T-Mobile stock gains as BofA upgrades to Buy, says satellite fears overblown
Yahoo Finance ·
T-Mobile stock gains as BofA upgrades to Buy, says satellite fears overblown Vahid Karaahmetovic Mon, July 6, 2026 at 8:14 AM EDT 2 min read TMUS Investing.com -- Bank of America on Monday upgraded T-Mobile U.S. to Buy from Neutral, reflecting a view that the market is overreacting to concerns about low-earth-orbit (LEO) satellite competition, with T-Mobile carrying the lowest exposure to that threat among major U.S. carriers. The company's shares rose 1.8% in premarket trading by 07:46 ET. The stock has been under pressure alongside the broader telecom sector, shedding 15% year-to-date. "We think bearishness has gripped the telecom market. T-Mobile is trading at trough valuation and, in our view, more than reflects the competitive threats," analyst Michael Funk said in a note. BofA kept its $220 price target on the stock. Funk said fears around LEO providers disrupting broadband and wireless markets, along with speculation that Charter and Comcast could combine into a more formidable competitor, have driven the sector-wide selloff. He added that a "prisoner's dilemma might drive AT&T, Verizon or T-Mobile to form a Mobile Virtual Network Operator (MVNO) with a LEO provider where self-interest wins over mutual benefit." T-Mobile wireless holds a 50% share of households in urban markets such as Los Angeles and New York, versus only 24% in rural markets, the inverse of where LEO direct-to-device service has so far concentrated. LEO services "seem to work best in rural and underserved environments and face potential propagation and capacity limits in dense urban environments," the analyst noted. Funk also pointed to T-Mobile's strategic position, citing its "lack of large-scale fiber strategy, strong spectrum position and dense urban wireless coverage" as factors that could make a partnership with a LEO operator mutually beneficial, even though the company's management has publicly denied interest in forming an MVNO. The carrier has the lowest-priced back book among U.S. wireless operators, giving it "the greatest flexibility to increase price," BofA noted, underpinning its forecast of 2.5%-3% postpaid average revenue per account (ARPA) growth. T-Mobile stock gains as BofA upgrades to Buy, says satellite fears overblown Nvidia's new Alpamayo project: What it means for Tesla? This sector is 'poised for a big, beautiful year': Truist
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