T-Mobile Gets Downgrade By KeyBanc: Retail’s Neutral

Shares of T-Mobile US Inc.came under pressure on Thursday, falling 0.31%, after the brokerage firm KeyBanc downgraded its rating on the communications services provider, but retail sentiment stayed neutral.

KeyBanc downgraded T-Mobile to “sector weight” from “overweight” without a price target, the Fly.com reported. According to the firm, T-Mobile's multiple has "become stretched" amid a changing competitive environment, which it "feels as if it is shifting toward a converged offering where T-Mobile is making acquisitions in Fiber business at significant multiples that have yet to be proven," the report added.

T-Mobile has previously stated it is expecting its earnings before interest taxes, depreciation, and amortization (EBITDA) to increase by 5% in 2025.

Retail sentiment on the stock has stayed neutral (46/100) from a day ago (45/100). Message volumes continue in the ‘normal’ category.

TMUS sentiment meter and message volumes on Dec 12

The telecom giant has beaten earnings per share estimates in three out of the last four quarters.

T-Mobile CEO Mike Sievert said the company hit a “decade-long record” for new mobile customers in its third quarter, warning that repeating the feat may prove challenging.

Bellevue, Wash.-based T-Mobile provides services through its subsidiaries and operates flagship brands including T-Mobile, Metro by T-Mobile and Mint.

T-Mobile stock is up 44% so far this year.