Oppenheimer Upgrades T-Mobile to Outperform With a $260 Price Target: Can AI Pricing Power Drive the Next Leg?

"Oppenheimer's Timothy Horan upgraded T-Mobile to Outperform, citing the carrier's ability to use AI for personalized pricing and customer retention, which could enhance margins."

"T-Mobile's service revenue increased by 11% year over year, reaching $18.8 billion, while management raised the shareholder return program by $3.6 billion to $18.2 billion."

"The shift in focus from subscriber growth to revenue per account is crucial as the U.S. wireless market matures, allowing T-Mobile to expand margins."

"Despite a forward P/E ratio of 17x, T-Mobile's valuation reflects its industry-leading growth potential, positioning it favorably against legacy telecoms."

Oppenheimer upgraded T-Mobile to Outperform, setting a $260 price target based on the carrier's potential to leverage AI for pricing and cost management. The stock trades at $196, significantly below its 52-week high. The focus is shifting from subscriber growth to revenue per account, as T-Mobile aims to retain high-value customers. The company reported strong earnings, with service revenue up 11% YoY, and plans to increase shareholder returns. T-Mobile's valuation reflects its growth potential despite a maturing market.

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