T-Mobile (NASDAQ:TMUS | TMUS Price Prediction) got a notable vote of confidence on Wednesday when MoffettNathanson LLC raised its rating on T-Mobile to Buy with a price target of $254. The upgrade arrives as the stock trades near $203, well below the analyst’s new target. For long-term investors, this is the kind of institutional signal that’s worth paying attention to.
The timing is notable given that T-Mobile shares are down 0.77% year-to-date. That’s a noteworthy dip for a company posting accelerating revenue growth and record customer additions.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| TMUS | T-Mobile US | MoffettNathanson | Upgrade | Neutral | Buy | N/A | $254 |
The Analyst’s Case
MoffettNathanson’s upgrade points to a company that’s firing on multiple cylinders. T-Mobile posted industry-best postpaid phone net additions of 3.3 million for full-year 2025, and free cash flow surged 80.27% year-over-year to $17.995 billion. T-Mobile’s momentum is clearly intact.
Benchmark, which reiterated a Buy rating with a $295 price target on April 2, projects 2.5% to 3% average revenue per account growth in 2026. That pricing power narrative aligns closely with MoffettNathanson’s bullish shift.
Company Snapshot
T-Mobile is the largest wireless carrier by postpaid customer momentum, operating under the T-Mobile, Metro by T-Mobile, and Mint Mobile brands. The company closed its UScellular acquisition in Q3 2025, adding 3.3 million postpaid phone customers, and now serves 9.4 million total broadband customers. T-Mobile swept five of six U.S. regions in J.D. Power’s network quality rankings.
CEO Srini Gopalan took the helm in late 2025, and his early commentary has been confident. “In 2025, more new postpaid customers chose the Un-carrier than ever before,” he said on the Q4 earnings call.
Why the Move Matters Now
At $203 per share, T-Mobile trades at a trailing P/E ratio of 20x and a forward P/E ratio of 19x. The analyst consensus price target sits at $268.68, with 22 Buy ratings and zero Sell ratings. That’s a wall of institutional support behind this upgrade.
Morningstar added T-Mobile to its 4-star “Undervalued” list on April 6, citing the stock’s price falling below fair value estimates. No matter how you slice it, the valuation case is strengthening.
What It Means for Your Portfolio
T-Mobile’s 2026 guidance calls for Core Adjusted EBITDA of $37 to $37.5 billion and adjusted free cash flow of $18 to $18.7 billion. That cash generation supports a quarterly dividend of $1.02 per share and an active buyback program. That said, corporate insiders have been net sellers, divesting roughly $150.85 million worth of shares in the last 90 days, which is a signal worth monitoring.
If you believe T-Mobile’s 5G leadership and free cash flow trajectory will continue, the MoffettNathanson upgrade adds meaningful Wall Street credibility to that thesis. That said, insider selling and brand perception risks deserve a second look before sizing up any position.
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