T-Mobile US aims to increase its wireless broadband subscriber base to 12 million by the end of 2028, up from its previous target of 7.5 million in 2025. T-Mobile stock has gained 23% in 2024.
Majority-owned by Deutsche Telekom, T-Mobile updated long-term financial guidance at a capital markets day on Wednesday.
"T-Mobile had an upbeat capital markets day, providing a financial outlook for 2027 ahead of the Street and a solid plan for capital allocation," said UBS analyst John Hodulik in a report.
In addition, T-Mobile forecast service revenue growth averaging 5% through 2027. It expects $75 billion to $76 billion in service revenue in 2027, ahead of consensus estimates of $74.5 billion.
T-Mobile Stock: $50 Billion In Shareholder Returns
T-Mobile said it expects to deliver $50 billion in additional stock buybacks and dividends to shareholders, despite recent acquisitions.
While T-Mobile stock dipped on Wednesday, shares rose 1.7% to near 200 on the stock market today.
As of June 30, T-Mobile had over 5.4 million wireless broadband subscribers. Most of them get high speed internet via T-Mobile's 5G wireless network.
Cable TV firms Comcast and Charter Communications are the biggest providers of fixed wireless
Meanwhile, Verizon Communications is targeting 4 million to 5 million fixed wireless access, or FWA, broadband subscribers by 2025.
With the 2020 acquisition of Sprint, the T-Mobile owns more 5G radio spectrum than AT&T or Verizon. That has provided an important edge as new services are rolled out.
T-Mobile Stock: Technical Ratings
"We believe by the end of the decade, T-Mobile appears to have targets that would make it a larger home broadband provider by customer count than both AT&T and Verizon, highlighting the company is not at a strategic disadvantage despite lower fiber home passed targets," said KeyBanc Capital Markets analyst Brandon Nispel in a report.
T-Mobile stock has an IBD Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup. The best stocks tend to have an RS Rating of at least 80.
Also, T-Mobile stock holds a 185.42 entry point. Shares trade above a 5% buy zone.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
