T-Mobile's Growth Stunted By Fiber Shortage And Market Rivalry
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Zinger Key PointsT-Mobile US is facing fiber shortage, while rivals are striking deals to converge mobile/home broadband.The market could witness elevated churn, slower net-adds and lose share to cable.Up Next: Get 5 Dark Horse Stocks Wall Street Is Quietly Loading Up OnT-Mobile US Inc.TMUSis grappling with a fiber shortagethat could hinderits growth in a competitive market, according to KeyBanc Capital Markets.The T-Mobile USAnalyst:Analyst Brandon Nispeldowngraded the rating to Underweight, while establishing a price target of $200.The T-Mobile US Thesis:While the company is fiber deficient, the latest strategic transactions ā ofAT&T IncTwithLumen Technologies IncLUMN,Charter Communications IncCHTRwith Cox Communication, andVerizon Communications IncVZwithFrontier Communications Parent Inc (NASDAQ: FYBR)ā are focused on converged mobile and home broadband, Nispel said in the downgrade note.Check outother analyst stock ratings.These developments suggest that a bundled offer may be needed to compete in the market, the analyst stated. Following these strategic deals, T-Mobile US now has a "poor competitive position," he added.Net adds across the industry seem to be declining, possibly due to macro uncertainty, price hikes, and competition, Nispel said. "Ultimately, we are forecasting elevated churn, a slower net-add environment, and share going to Cable," he further wrote.TMUS Price Action:Shares of T-Mobile US had declined by 1.6% to $232.04 at the time of publication on Wednesday.Loading...Loading...Read More:Telecom Stocks Are No Longer One-Size-Fits-All, Analyst Says ā Hereās Which Company Stands OutPhoto: ShutterstockCHTRCharter Communications Inc$402.57-2.21%Stock Score Locked: Want to See it?Benzinga Rankings give you vital metrics on any stock ā anytime.Reveal Full ScoreEdge RankingsMomentum84.36Growth55.46Quality60.64Value42.80Price TrendShortMediumLongOverviewLUMNLumen Technologies Inc$4.540.44%TAT&T Inc$28.14-0.55%TMUST-Mobile US Inc$232.17-1.61%VZVerizon Communications Inc$42.62-1.02%Market News and Data brought to you by Benzinga APIsĀ© 2025 Benzinga.com. . .EarningsAnalyst RatingsOptionsDividendsIPOsdateā²ā¼tickerā²ā¼nameā²ā¼Price Targetā²ā¼Upside/Downsideā²ā¼Recommendationā²ā¼Firmā²ā¼Click to see moreAnalyst RatingsupdatesAnalyst CalendarJoin Benzinga Edge and unlock all the major upgrades, downgrades, and changes to the market's most accurate analysts.Click to JoinPosted In:Analyst ColorDowngradesAnalyst RatingsMoversBrandon NispelExpert IdeasKeyBanc Capital MarketsStories That Matter