T-Mobile Has 65% Upside Potential After Acquiring Sprint

Shares of T-Mobile have jumped 12% today to new all time highs on news of a judge approving their proposed acquisition of Sprint. The merger solidifies T-Mobile as a formidable competitor to Verizon and AT&T. They now have the scale to compete and a massive spectrum portfolio that eclipses everyone else. With a forward P/E of 15.3x, T-Mobile trades at a premium to its peers, but at a 20% discount relative to the S&P 500.

Looking at the charts, there is considerable upside potential in shares of T-Mobile. The stock has been trading in a well defined rising channel since 2010. Applying fibonacci extension analysis utilizing the highs of 2007 and the lows of 2009 generates price targets of $98 and $155. This represents upside potential of +5% and +65%, respectively. Stocks in the $90's tend to go to $100, so keep a close eye on shares of T-Mobile going forward.

Technical analysis of shares of T-Mobile

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