Raymond James Raises T-Mobile Rating, Sees No SpaceX Threat Yet

what happened

T-Mobile is accustomed to competing with larger companies, Raymond James said in a research note, according to Dow Jones Newswires. Analysts Frank Louthan and Rob Palmisano said recent concerns about competition from SpaceX were overstated because the company faces significant time and spectrum hurdles before it can become an established competitor.

“Having spectrum and constructing a robust, modern five-nines mobile network that meets the ubiquitous standards consumers expect are two separate matters,” the analysts said. In their view, incumbent operators — including TMUS — hold significant advantages in spectrum and terrestrial network capabilities. Raymond James upgraded T-Mobile to Outperform from Market Perform.

why it matters

For markets, the assessment indicates that Raymond James does not yet view SpaceX as a material competitive threat to T-Mobile. The rating change reflects a more favorable view of the operator’s position, supported by its spectrum and terrestrial-network advantages.

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