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.

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.