Oppenheimer Updates its View on T-Mobile US

Oppenheimer analysts provided a review on T-Mobile US, Inc. (NASDAQ:TMUS), adjusting their model to account for the ongoing shortage of the new iPhone 14 model.

The analysts revised their Q4 equipment revenue estimate down from $5.2 billion to $4.8 billion. Despite this, they expect the company to enter 2023 with strong momentum and see significant improvements in its network. These improvements include increasing the spectrum depth from 120 MHz to 200 MHz by the end of 2023 and launching the mid-band spectrum on 5G Standalone. The company is also expanding geographically to new areas. Last quarter, T-Mobile completed the shutdown of the Sprint network and the merger is expected to be complete next year, at which point the full synergies should be realized.

The analysts are optimistic about fixed wireless services and expect to see around 500,000 quarterly net adds through 2025, as customers choose premium unlimited plans that allow them to bundle Home Internet with mobile and save $20 per month.