Shares of telecommunications name T-Mobile US Inc (NASDAQ:TMUS) are down 3.7% at $210.91 at last glance, following two bear notes. Wells Fargo downgraded the stock to "equal weight" from "overweight," with a price-target cut to $220 from $240, while RBC slashed its rating to "sector perform" from "outperform," with a price-target cut to $240 from $255.
Both firms cited TMUS' high valuation and decelerating growth. Of the 30 analysts in coverage, 21 still carry a "buy" or better rating, leaving plenty of room for a further shift, should this be the start of a downgrade cycle.
On the charts, T-Mobile stock is headed for its fifth loss in the last six sessions as it falls further from a Nov. 27 record high of $248.15. The shares today dipped below their 120-day moving average, which provided support April-May, for the first time since October 2023. Year over year, the equity is up 29.3%.
Call traders appear to be betting on upside for the shares despite today's bear notes, as so far, TMUS has seen double the call volume typically seen at this point in the day. The January 230 call is the most popular contract, followed by the February 220 call. The stock's "oversold" condition could help these bulls' case in the short term, per its 14-day relative strength index (RSI) of 22.