11:28 AM EDT, 09/12/2024 (MT Newswires) -- T-Mobile US ( TMUS ) is "well-positioned" to continue taking market share, expand margins, and grow faster than peers, all while ramping its free cash flow in the next three years, UBS said in a Wednesday note.

"We expect T-Mobile to provide a compelling three-year outlook for subscriber and financial growth along with a new capital allocation plan at its upcoming Capital Markets day on Sept. 18," the investment firm said in the note.

According to UBS, T-Mobile has more room to increase its share in the enterprise and small/rural markets, potentially adding 7 million postpaid phone subscribers through 2027. The company is also expected to exceed 12 million fiber homes and service about 3 million fiber subscribers by the end of 2027, UBS added.

UBS also said it expects T-Mobile to target service revenue growth of about 5% growth in 2027 while maintaining annual capex at $9 billion to $10 billion for the next three years.

UBS reiterated its buy rating on T-Mobile, with a $210 price target.

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