Based on earlier this week's Q3 earnings, Raymond James analysts downgraded T-Mobile US (NASDAQ:TMUS) to "Market Perform" from "Outperform". The action goes in spite of T-Mobile's better-than-expected Q3 results and higher full-year estimate. Since T-Mobile's merger with Sprint, Raymond James noted its excellent execution, which added to its market positioning and attractive margins. Analysts noted, that despite the headiwnds; TMUS stock has already surged 13% since the last rating drop earlier this month.

• Warning! GuruFocus has detected 7 Warning Signs with TMUS.

Analysts find it difficult to justify a larger premium at this stage compared to when T-Mobile was expanding faster against rivals AT&T and Verizon (NYSE:VZ) as the company is trading above Raymond James' year-end 2025 price projection of $221. Raymond James said, "TMUS continues to execute strongly, with another typical beat and tweak-up guidance." They did note, though, that buybacks were considerably slower and that recent higher outlook contained a $137 million non-cash spectrum gain offsetting hurricane impacts, implying the stock may have gotten pricey. Up almost 46% year-to- date, T-Mobile shares well exceed the 22% rise of the S&P 500.

This article first appeared on GuruFocus.