T-Mobile has had a rough 12 months. The stock is down around 25% over the past year, trading at $195.71 as of Friday’s close. That slide has caught the attention of KeyBanc analyst Brandon Nispel, who sees a buying opportunity in the beaten-down wireless name.
On Sunday, KeyBanc upgraded TMUS to Overweight from Sector Weight and set a price target of $260. That implies roughly 33% upside from current levels.
The stock edged 0.6% higher ahead of Monday’s open in response to the upgrade.
Nispel pointed to three main reasons for the call. First, he expects organic EBITDA growth to accelerate, with upside potential as T-Mobile’s AI investments begin to pay off. Second, he sees T-Mobile’s network position as an edge in both fixed wireless access and mobile market share. Third, he highlighted the company’s balance sheet flexibility as a strategic asset.
KeyBanc is valuing TMUS at approximately 9x its 2027 EV/EBITDA estimate. The stock currently trades at an EV/EBITDA of 10.17x, which the firm says is compressed relative to both its historical range and its peer group.
That compression, in KeyBanc’s view, provides downside protection even if growth comes in below expectations.
KeyBanc flagged T-Mobile’s upcoming Q1 2026 results as a potential turning point. The firm expects the company to beat consensus estimates and raise full-year guidance, which could help reset sentiment around the stock.
InvestingPro’s analysis backs up part of the bull case. Its Fair Value model suggests TMUS is undervalued, and the platform rates the company’s financial health as “Good.” The RSI reading also puts the stock in oversold territory.
KeyBanc did acknowledge the competitive landscape. Both Verizon and Starlink are pressing harder for market share, but the firm said it doesn’t expect either to materially change T-Mobile’s growth path.
T-Mobile has had some other noteworthy moves recently. The company released certain subsidiary guarantees under its $10 billion revolving credit facility after paying off legacy debt, a housekeeping step tied to its existing indentures.
It also declared a quarterly cash dividend of $1.02 per share, payable June 11, 2026.
On the analyst front, KeyBanc isn’t alone in its positive stance. Benchmark reiterated a Buy rating, Daiwa Securities upgraded TMUS to Outperform from Neutral with a $240 target, and Raymond James maintained a Strong Buy on Uniti Group following speculation about a possible T-Mobile and Uniti Fiber deal.
T-Mobile last reported an EV/EBITDA of 10.17x with the stock sitting at $195.71 as of Friday’s close.
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