Daiwa Securities on Wednesday moved T-Mobile US (NASDAQ:TMUS) from a Neutral rating to Outperform and raised its target price to $240 from $230. At the time of Daiwa's action, the stock price stood at $213.25, implying about 12.5% upside to the new target.
The upgrade follows a period of notable weakness in the share price. T-Mobile has retreated from its 52-week high of $276.49. On valuation measures, the company is trading above its five-year average EV/forward EBITDA of 7.7x, with a current EV/EBITDA of 10.76x. Daiwa's updated $240 target is derived from an assumed 9.3x EV/forward EBITDA.
InvestingPro data referenced alongside the note indicates the stock is trading slightly below its calculated Fair Value. Daiwa described the premium valuation as warranted by what it sees as sector-leading growth at T-Mobile. The firm also observed that T-Mobile remains the most expensive stock within the wireless oligopoly.
Supporting metrics cited in the same data set show T-Mobile's revenue growth at 8.49% and a P/E ratio of 22.03. An InvestingPro Tip included with the data cautions that the stock's P/E is high relative to near-term earnings growth, reflected in a PEG ratio of 35.26.
Operationally, Daiwa changed its recommendation level from Neutral (3) to Outperform (2) on the standard rating scale it uses.
Other broker updates have followed T-Mobile's fourth-quarter 2025 results, producing a range of price targets and reaffirmations:
- UBS reiterated its Buy rating and kept a $300 price target, highlighting a positive outlook for EBITDA growth.
- Benchmark maintained a Buy rating with a $295 price target, citing T-Mobile's network advantages even after a slight miss in postpaid mobile additions.
- Wolfe Research raised its price target to $255 and maintained an Outperform rating, noting strong financial results despite some weaker key performance indicators.
- TD Cowen lowered its price target to $252, describing mixed results tied to higher customer churn rates, while retaining a Buy rating.
- Scotiabank reduced its price target to $266 but continued to describe T-Mobile as a leading industry force with an advanced 5G network.
These analyst moves illustrate varying views on near-term performance and specific operating metrics, while reflecting a general thread of optimism about T-Mobile's outlook among the analysts cited.
Summary takeaways from Daiwa's action include the following: the upgrade and higher target rest on a growth-based valuation case, the stock currently trades above its multi-year EV/EBITDA average, and third-party data flags both attractive revenue growth and a high P/E relative to near-term earnings expectations.