T-Mobile US announced the acquisition of the Sprint-branded wireless operating assets of Brookings Municipal Utilities (BMU), for an undisclosed sum.
The US wireless carrier T-Mobile (TMUS) said that the acquisition will include BMU’s wireless network, PCS (personal communications service) spectrum, and retail stores. The deal, which is expected to close in the first quarter of 2021, will help T-Mobile to expand its retail distribution and network coverage.
T-Mobile’s CEO Mike Sievert said, “Once fully integrated, we will expand our retail footprint in the area and bring T-Mobile’s award-winning approach to service to these customers.” (See TMUS stock analysis on TipRanks)
On Dec. 22, Oppenheimer analyst Timothy Horan upgraded the stock to Buy from Hold and reiterated a price target of $160 (20.8% upside potential). In a note to investors, Horan wrote, “T-Mobile should continue to grow market share, given its superior 5G network and 10% price discounts.” He added that “TMUS trades at an attractive valuation compared to peers.”
Like Horan, the rest of the Street maintains a bullish outlook on the stock. The analyst consensus of a Strong Buy is based on 14 Buys and 2 Holds. Meanwhile, the average analyst price target of $145.75 implies 10.1% upside potential. T-Mobile stock soared about 69.4% over the past year.