Citi Sets T-Mobile Price Target at $225 — Here’s What It Will Take for TMUS to Get There

<h3>Quick Read</h3>
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<li> <p class="yf-1fy9kyt">T-Mobile US (TMUS) added 3.3 million postpaid phone net additions in 2025 (industry-leading), generated $17.995 billion in free cash flow (up 80.27% year-over-year), and guided for $37.0B to $37.5B Core Adjusted EBITDA in 2026 representing 10% year-over-year growth. Citi analyst Michael Rollins raised his price target to $225 from $220, arguing the stock trades at a 0.8 PEG ratio that underprices earnings growth and deserves multiple expansion.</p></li>
<li> <p class="yf-1fy9kyt">T-Mobile’s industry-leading subscriber growth and accelerating free cash flow provide the cash generation needed to fund its $14.6 billion buyback authorization through December 2026 and support Citi’s case for valuation re-rating toward the $225 target.</p></li>
<li> <p class="yf-1fy9kyt">A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality.</p><a href="https://247wallst.com/lp/the-simple-habit-that-can-double-americans-retirement-savings-and-why-you-should-start-today/?i=776c77c2-e782-4aaa-b61e-f8e4b1e9a37a&amp;p=ebadc3d1-a33c-4a9b-912c-8b2543ac0c0b&amp;pos=keypoints&amp;tpid=1568153&amp;utm_source=yahoo&amp;utm_medium=referral&amp;utm_campaign=feed&amp;utm_content=feed||1568153">Read more here</a>.</li>
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<p>T-Mobile US (<a href="https://finance.yahoo.com/quote/TMUS/">NASDAQ:TMUS</a>) has had a mixed stretch heading into spring. The stock is down 1.23% over the past week and off 17% over the past 12 months, well off the 52-week high of $268.02. Most analysts on the Street carry considerably higher targets, with the consensus sitting at $268.52. Against that backdrop, Citi analyst Michael Rollins raised his price target to $225 from $220, while maintaining a Neutral rating. But can TMUS realistically reach $225 by the end of 2026?</p>
<h2>Michael Rollins's $225 TMUS Prediction</h2>
<p>Rollins's updated call is grounded in two straightforward premises: inline Q1 2026 results and a better multiple for T-Mobile's growth prospects. The multiple re-rating argument has merit. T-Mobile currently trades at a forward P/E of roughly 20x with a PEG ratio of 0.8, suggesting the market may be underpricing its earnings growth relative to peers. The company guided for Core Adjusted EBITDA of $37.0B to $37.5B in 2026, representing approximately 10% year-over-year growth at the midpoint, which supports the case for modest multiple expansion.</p>
<p>Read: <a href="https://247wallst.com/lp/the-simple-habit-that-can-double-americans-retirement-savings-and-why-you-should-start-today/?i=776c77c2-e782-4aaa-b61e-f8e4b1e9a37a&amp;p=d474a5a7-790a-4f9f-bfcb-02fc45c14ad3&amp;pos=mid_content&amp;tpid=1568153">Data Shows One Habit Doubles American’s Savings And Boosts Retirement</a></p>
<p>Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that <a href="https://247wallst.com/lp/the-simple-habit-that-can-double-americans-retirement-savings-and-why-you-should-start-today/?i=776c77c2-e782-4aaa-b61e-f8e4b1e9a37a&amp;p=d474a5a7-790a-4f9f-bfcb-02fc45c14ad3&amp;pos=mid_content&amp;tpid=1568153">people with one habit</a> have more than double the savings of those who don’t.</p>
<h2>Key Drivers of TMUS Stock Performance</h2>
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<li> <p class="yf-1fy9kyt">Industry-leading subscriber growth: T-Mobile added 3.3 million postpaid phone net additions in full-year 2025, the best in the industry. Consistent subscriber growth compounds into durable service revenue, a critical engine for long-term cash flow.</p></li>
<li> <p class="yf-1fy9kyt">Free cash flow acceleration: Full-year 2025 free cash flow reached $17.995 billion, up 80.27% year-over-year, with 2026 guidance calling for $18.0B to $18.7B in adjusted free cash flow. That cash generation funds buybacks and dividends directly.</p></li>
<li> <p class="yf-1fy9kyt">Shareholder return program: T-Mobile authorized up to $14.6 billion in buybacks through December 2026, alongside a $1.02 per share quarterly dividend. Combined with a low beta of 0.41, the company combines a low beta with a dividend and buyback program.</p></li>
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