T-Mobile US (TMUS) shares are expected to continue performing in line with sector average over the next 12 months, with stable revenue growth offset by increased competition, RBC Capital Markets said Friday.
In a note to investors, RBC said its 2025 estimates for the US wireless carrier remain unchanged, with any upside from T-Mobile's recent acquisition of the Blis Vistar Media ads business, which are expected to contribute $250 million in revenue, offset by competitiveness in the wireless space.
RBC said it expects wireless revenue growth of 5.1% in Q1, dampened by a $700 million decline in wholesale revenue. "We expect 1Q25 to reflect an elevated level of competition in the industry, with higher churn, higher subsidies and lower net additions," RBC said.
RBC retained its sector perform rating on the stock, while raising its price target to $260 from $245 previously.
Shares of T-Mobile were down less than 1% in recent premarket activity on Friday.
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