Signal Strength

T-Mobile $TMUS ( ▲ 0.96% ) just earned an upgrade from Daiwa Capital Markets.

Analyst Jonathan Kees raised the stock to Outperform and set a $240 price target, implying roughly 12% upside over the next 12 months.

He argues the telecommunications sector offers a welcome haven amid economic and market uncertainty.

Because telcos provide essential services, revenues tend to be recurring and business models steady.

In Kees’ view, that stability makes the group attractive when volatility rises. He also upgraded Verizon $VZ ( ▲ 1.23% ) for similar reasons.

But Kees believes T-Mobile specifically can maintain its growth leadership, pointing to a recent investor update and the stock’s pullback of more than 16% over the past six months.

He highlighted shareholder return plans extending into 2026 and beyond, including dividends and capital returns.

The convergence of broadband and wireless is another tailwind.

T-Mobile is a leader in Fixed Wireless Access broadband customers and should continue generating healthy net adds, according to Kees.

Daiwa also cited “price rationality” across the industry.

Rather than engaging in aggressive price wars, T-Mobile appears focused on innovation and value-added offerings, a strategy Kees views favorably in a mature market.

Even after outperforming the broader market this year, valuations remain attractive, the analyst said.

For investors seeking defensive growth with operational momentum, Daiwa believes T-Mobile still has a strong signal.