[ibd-display-video id=2666338 width=50 float=left autostart=true] Braxton Carter, speaking at a Morgan Stanley conference in Barcelona, said T-Mobile's board of directors in late November will consider a "significant" share buyback. Carter previously signaled a possible stock buyback in September at a Goldman Sachs conference.
"We estimate a buyback could be in the $5 billion range for 2018 and potentially even higher if Deutsche Telekom chooses to participate (thereby increasing its stake)," Jennifer Fritzsche, a Wells Fargo analyst, said in a note to clients.
"Given its expected ramp in free cash flow, we're not surprised that T-Mobile is pursuing a buyback, but it should be a catalyst to shares which have underperformed since the Sprint deal fell through," Fritzsche added.
IBD'S TAKE:With Thursday's gain, T-Mobile stock is up over 3% in 2017 but down from 67.50 on June 5 when merger speculation involving Sprint heated up. Learn more about T-Mobile and the telecom wireless group atIBD Stock Checkup .
T-Mobile stock jumped 5.5% to close at 59.80 on the stock market today .