Guggenheim Analysts Expect Big Growth From T-Mobile In 2018

Analysts at Guggenheim have more good news for fans of T-Mobile, as the firm predicts that the carrier is all set to experience even more massive growth over the coming year. According to analyst Mike McCormack, that's down to the company's position in the market. T-Mobile is up more than double the rate of its competitors this month - at 11-percent compared to the average mobile industry rate of just 4.5 percent. That's despite suffering some serious setbacks over the past 12 months, ranging from a failed Sprint merger to lackluster iPhone sales. In fact, following the turnaround from its difficulties, the mobile carrier is the only one competing in the space that currently "grows service revenue," McCormack says. Cashflow is also positive for the self-proclaimed "Un-Carrier" and a new 12-month stock price target has been set at $80. That's compared to its current price of $64.98, which already towers over the other carriers.

At the same time, that position is bolstered further by the company's continued investment in its network, care centers, and other aspects of the business. The company recently opened a brand new customer service center with new amenities intended to make life easier for its representatives, while also doubling the number of those employees. Meanwhile, it managed to open as many as 1,500 new stores throughout 2017, with more planned to open over the next 12 months. That's in addition to building out its network to both improve its currently offered network technologies and to prepare for the incoming wave of 5G devices. All of that, taken in combination, has provided T-Mobile with a means to continual steal market share from competitors and to open up more markets for new subscribers. According to McCormack, it makes the mobile service provider seem to be "unstoppable," at least for now.

Whether or not T-Mobile can continue its rapid growth and favorable is going to be an interesting thing to watch over the course of 2018 and heading into 2019. Some of its competitors have called out the company, with claims that it is making mistakes in the way it has been building out its network. Any loss of consumers is almost certain to create a much more competitive and hostile market. That could be good for the industry as a whole but might also result in more complaints against the company regarding its claims and practices. Beyond that, T-Mobile may be forced to make some decidedly carrier-like choices if things begin to shift in the other direction. In the meantime, the company is doing well and analysts don't necessarily see that changing anytime soon.

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