NEW YORK (TheStreet) -- T-Mobile (TMUS) shares are down 0.78% to $38.25 in afternoon trading on Wednesday after the mobile carrier was downgraded today to "neutral" from "outperform" by analysts at Macquarie.
The downgraded outlook is in response to pessimism surrounding the company's possible acquisition by Dish Network (DISH).
"We are downgrading shares of our previous top carrier pick T-Mobile, as the shares have hit our $38 target price," analyst Kevin Smithen said.
"We feel the risk/reward is now fairly balanced, with a potential DISH bid at $41-$42 fully priced into the stock when adjusting for a lengthy regulatory approval process and potentially adverse reaction to Dish Networks' share price on a merger announcement," said Smithen.
Dish Network shares are up 0.63% to $69.50 in trading today.
TheStreet Ratings team rates T-MOBILE US INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate T-MOBILE US INC (TMUS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, revenue growth, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."