JPMorgan keeps T-Mobile as top pick despite phone add cuts

JPMorgan analyst Philip Cusick lowered its Q1 postpaid phone net addition estimate for T-Mobile to 540,000 from 600,000 and reduced its upgrade rate to 3.8% from 4.2% on more moderate than expected customer activity. This 8% year-over-year slowdown expected is still ahead of the overall industry, where the firm expects Q1 adds of 1.42M, down 24% year-over-year despite strong cable growth, the analyst tells investors in a research note. T-Mobile remains the analyst’s favorite stock, on expectations of "substantial" synergy and operating efficiencies driving strong EBITDA and cash flow growth, as well as substantial capital return. It reiterates an Overweight rating on the shares with a $200 price target.