Scotiabank on Thursday adjusted its target share price for T‑Mobile US (NASDAQ:TMUS) down slightly to $266.00 from $270.50, while keeping a Sector Outperform recommendation. The revised target remains materially higher than the company’s current share price of $209.54 and implies substantial upside for the $231.95 billion telecom company.
In its note, the bank described T‑Mobile as an "industry juggernaut" and pointed to a strategy anchored in an advanced 5G network combined with strong customer value and experience. Scotiabank said that combination supports the company’s standing within the Wireless Telecommunication Services industry and underpins recent financial performance, including 7.3% revenue growth over the last twelve months.
Scotiabank highlighted what it called a "triple-threat differentiation" that, in the firm’s view, has allowed T‑Mobile to sustain industry-leading expansion. The bank cited a projected 9% Core Adjusted EBITDA compound annual growth rate for the 2023-2027 period, describing that pace as more than double that of T‑Mobile’s peers. It also pointed to the stock’s low historical volatility as evidence of a resilient business model, noting a five-year beta of 0.44.
The analysts identified explicit avenues for further growth, including under-penetrated segments such as business customers and rural markets, along with a rapidly growing broadband business. Scotiabank also flagged the carrier’s disciplined capital allocation framework, which it said includes up to an additional $50 billion in a return envelope through 2027. Those capital-return plans were cited as a reason the firm maintained its Sector Outperform rating despite lowering the price objective.
Separately, T‑Mobile reported fourth-quarter 2025 results that topped Street forecasts. The company posted earnings per share of $2.14 versus the expected $2.04, and revenue of $24.33 billion compared with an anticipated $24.18 billion. Despite the earnings and revenue beats, T‑Mobile’s stock fell in pre-market trading.
Scotiabank’s note and the company’s most recent quarterly report together underline the points investors and analysts are watching: network-led customer appeal, relative revenue momentum, operational profitability trajectories and the planned scope of shareholder returns. InvestingPro data cited in the bank’s update indicates the shares are slightly undervalued on a Fair Value basis, a view consistent with the maintained Sector Outperform stance and the revised target that remains well above current market levels.
Investors monitoring T‑Mobile’s path forward will be focused on execution in business and rural markets, the expansion of broadband offerings and the firm’s actual deployment of its stated capital returns through 2027. In the near term, market reaction to quarterly results and analyst guidance will continue to influence the stock’s price action.