Citi Sets T-Mobile Price Target at $225 — Here’s What It Will Take for TMUS to Get There

2 hours ago 2

Joel South

Tue, March 17, 2026 astatine 11:02 AM CDT 4 min read

T-Mobile US (TMUS) added 3.3 cardinal postpaid telephone nett additions successful 2025 (industry-leading), generated $17.995 cardinal successful escaped currency travel (up 80.27% year-over-year), and guided for $37.0B to $37.5B Core Adjusted EBITDA successful 2026 representing 10% year-over-year growth. Citi expert Michael Rollins raised his terms people to $225 from $220, arguing the banal trades astatine a 0.8 PEG ratio that underprices net maturation and deserves aggregate expansion.
T-Mobile’s industry-leading subscriber maturation and accelerating escaped currency travel supply the currency procreation needed to money its $14.6 cardinal buyback authorization done December 2026 and enactment Citi’s lawsuit for valuation re-rating toward the $225 target.
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T-Mobile US (NASDAQ:TMUS) has had a mixed agelong heading into spring. The banal is down 1.23% implicit the past week and disconnected 17% implicit the past 12 months, good disconnected the 52-week precocious of $268.02. Most analysts connected the Street transportation considerably higher targets, with the statement sitting astatine $268.52. Against that backdrop, Citi expert Michael Rollins raised his terms people to $225 from $220, portion maintaining a Neutral rating. But tin TMUS realistically scope $225 by the extremity of 2026?

Rollins's updated telephone is grounded successful 2 straightforward premises: inline Q1 2026 results and a amended aggregate for T-Mobile's maturation prospects. The aggregate re-rating statement has merit. T-Mobile presently trades astatine a guardant P/E of astir 20x with a PEG ratio of 0.8, suggesting the marketplace whitethorn beryllium underpricing its net maturation comparative to peers. The institution guided for Core Adjusted EBITDA of $37.0B to $37.5B successful 2026, representing astir 10% year-over-year maturation astatine the midpoint, which supports the lawsuit for humble aggregate expansion.

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Industry-leading subscriber growth: T-Mobile added 3.3 cardinal postpaid telephone nett additions successful full-year 2025, the champion successful the industry. Consistent subscriber maturation compounds into durable work revenue, a captious motor for semipermanent currency flow.
Free currency travel acceleration: Full-year 2025 escaped currency travel reached $17.995 billion, up 80.27% year-over-year, with 2026 guidance calling for $18.0B to $18.7B successful adjusted escaped currency flow. That currency procreation funds buybacks and dividends directly.
Shareholder instrumentality program: T-Mobile authorized up to $14.6 cardinal successful buybacks done December 2026, alongside a $1.02 per stock quarterly dividend. Combined with a debased beta of 0.41, the institution combines a debased beta with a dividend and buyback program.