The firm also reiterated its price target of $25 for the mobile communications company.
"Subscriber momentum cannot be profitably sustained, the stock remains expensive, and strategic options represent limited upside or are simply non-existent," said analysts at Bank of America/Merrill Lynch. "Recent results show the company is struggling to balance subscriber growth and profitability even as churn, bad debt and competitive risks grow more intense."
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Separately, TheStreet Ratings team rates T-MOBILE US INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and relatively poor performance when compared with the S&P 500 during the past year."