T-Mobile stock price forecast: Morgan Stanley sees a 35% upside

T-Mobile US Inc (NASDAQ: TMUS) has been a disappointment for shareholders this year but a Morgan Stanley analyst is convinced their patience will be rewarded moving forward.

T-Mobile stock should be worth $178

On Thursday, Simon Flannery reiterated his “overweight” rating on the telecom giant and raised his price target to $178 – about a 35% upside from here.

The analyst likes T-Mobile stock for its sizable buyback programme that, following the recent weakness, can be executed at a lower price.

He remains bullish even though the network operator came in shy of revenue estimates in its latest reported quarter. Its shares have lost over 10% in less two months.

T-Mobile to expand share in wireless industry

Simon Flannery is confident that the Nasdaq-listed firm will continue to expand its share in the wireless industry which will help it further in outperforming the sector.  

The newly-launched 5G plan, the analyst added, is significantly incremental to the company’s top-line. His research note also reads

Morgan Stanley sees wholesale traffic offloading related to Verizon and DISH as a temporary headwind only. On Thursday, famed investor Jim Cramer also conceded that it was hard to be in a price war with T-Mobile US Inc.