What T-Mobile US (TMUS)'s $2.8 Billion Debt Raise and CEO Shift Mean for Shareholders

• T-Mobile US recently completed a US$2.8 billion fixed-income offering, issuing callable senior unsecured notes with maturities in 2033, 2035, and 2056, and added multiple co-lead underwriters including major global banks.
• This development comes as T-Mobile undergoes a leadership transition, expands its 5G and satellite connectivity services, and receives industry recognition for wireless satisfaction across business and residential segments.
• We'll examine how T-Mobile's CEO transition and renewed focus on 5G policy advance the company's long-term investment narrative.

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T-Mobile US Investment Narrative Recap

To believe in T-Mobile US as a shareholder, you have to trust in its ability to drive sustained customer growth and profitability by leading in 5G, broadband, and digital innovation, while steadily managing debt and responding to industry competition. The recent US$2.8 billion fixed-income offering further strengthens its balance sheet but does not materially change the company’s most important short-term catalyst, continued growth in postpaid subscriptions, or its most immediate risk, which remains competitive pressures and elevated churn in the US wireless market.

The expanded T-Satellite service announcement is especially relevant right now, as it reinforces T-Mobile’s 5G and connectivity leadership at a time of heightened industry competition and shifting customer expectations. By supporting new off-the-grid app capabilities and investing in next-generation communications, T-Mobile is positioning itself to drive ongoing customer additions, a critical near-term catalyst for service revenue growth.

But on the risk side, investors should keep in mind that if rivals step up device promotions or customers become more price sensitive, it could pressure margins and...

Read the full narrative on T-Mobile US (it's free!)

T-Mobile US' outlook anticipates $98.3 billion in revenue and $17.3 billion in earnings by 2028. This projection relies on a 5.3% annual revenue growth rate and a $5.1 billion earnings increase from the current $12.2 billion.

Uncover how T-Mobile US' forecasts yield a $272.30 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Seven private investors in the Simply Wall St Community value T-Mobile US shares between US$197 and US$538, reflecting a wide range of forecasts. While some see strong upside, the company’s exposure to heightened churn and competitive pricing could influence future expectations and reinforce why opinions often differ sharply, see for yourself how investor insights shape the debate.

Explore 7 other fair value estimates on T-Mobile US - why the stock might be worth 13% less than the current price!

Build Your Own T-Mobile US Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your T-Mobile US research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free T-Mobile US research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate T-Mobile US' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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