T-Mobile's Stock Rallies Toward 6 1/2-month High After Analyst Upgrade

T-Mobile US Inc.'s stock rallied 1.7% in afternoon trade Thursday, toward the highest close since in 6 1/2 months, after Citigroup upgraded the wireless carrier on the upbeat outlook for its "Un-carrier" strategy. Analyst Michael Rollins raised his rating to buy, after being at neutral for at least three years. He lifted his price target to $40, which is 22% above current levels, from $37. T-Mobile US's "Un-carrier" strategy refers to how there are no annual service contracts or domestic usage overages like other carriers. "We believe T-Mobile is retaining favorable traction to take postpaid share within urban markets from its Un-carrier value proposition while the company is digesting an elevated mix of sub-prime customers better than what we previously anticipated," Rollins wrote in a note to clients. The stock has surged 22% year to date, while the S&P 500 has gained 2.5%.