BofA Securities Reiterates 'Neutral' Rating on T-Mobile (TMUS)

T-Mobile US Inc. (NASDAQ:TMUS) is one of the 10 best defensive stocks to buy in a volatile market. On July 7, BofA securities reinstated coverage of the stock with a ‘Neutral’ rating and a $255 price target. The Neutral stance comes amid concerns about the stock’s premium valuation as it trades at a price-to-earnings multiple of 23.

In addition, BofA remains wary about the company’s high institutional ownership and record-high growth forecasts, which hint at limited upside potential. Nevertheless, the research firm has affirmed T-Mobile’s industry leadership in postpaid phone net ads amid revenue and EBITDA growth.

The communication services company is also in a solid financial position with $31.6 billion in EBITDA and 5.3% revenue growth over the last 12 months. BofA believes T Mobile is in a position to follow other cable companies with more competitive pricing and promotional offers to strengthen its edge in the industry.

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Disclosure: None. This article is originally published at Insider Monkey.