T-Mobile Downgraded by Wolfe Research Amid Growth and Capital Return Concerns
On August 14, 2026, T-Mobile US (NASDAQ:TMUS) was downgraded from Outperform to Peer Perform by Wolfe Research analyst Peter Supino. The downgrade stems from concerns over slowing growth in the company's core business due to increased competition and potential pressure on capital returns as it invests more heavily in broadband and 6G infrastructure. T-Mobile reported a decline in postpaid net account additions, dropping 13% year-over-year to 277,000. Management also expects further declines into Q3 amid rate-plan modernization efforts that are temporarily increasing churn rates. Additionally, capital expenditures rose by 12.8% to $2.7 billion during the second quarter, raising concerns about future returns for shareholders. Despite these challenges, T-Mobile's stock remains at a premium compared to peers like AT&T and Verizon due to its growth expectations. However, Supino warns that this valuation may not be sustainable if competitive pressures persist or capital needs rise further.
Tickers: $TMUS
Topics: capital expenditures competition stock downgrade telecom