UPDATE: Goldman Sachs Upgrades T-Mobile US on Unique Investment Opportunity

In a report published Friday, Goldman Sachs analyst Matthew Niknam upgraded the rating on T-Mobile US (NYSE: TMUS) from Buy to Conviction-List Buy, and raised the price target from $31.00 to $32.00.

In the report, Goldman Sachs noted, “We add T-Mobile to the Americas Conviction Buy list. We believe TMUS shares represent a unique opportunity, including: (1) an operational turnaround, (2) substantial growth in EBITDA and free cash flow in forward periods, and (3) upside via potential strategic activity. We expect above-consensus postpaid growth and an increasing contribution from prepaid to fuel the top-line, while organic and deal-related synergies provide additional EBITDA and free cash flow tailwinds. Increased near-term volume growth modestly impacts near-term estimates, but drives greater accretion longer-term (driving our price target +$1 to $32).”

T-Mobile US closed on Thursday at $27.44.