In a recent report, analysts at Credit Suisse outlined their 2015 outlook for telecom stocks. Analysts picked T-Mobile US Inc TMUS 0.43% as their top pick in the sector.

Buyout Target

Analysts believe that T-Mobile is the best acquisition target during potential consolidation in the space. After the recent AT&T Inc. T 0.46% buyout of DIRECTV DTV 0.54%, competitors such as Verizon Communications Inc. VZ 0.79% could feel pressure to consider acquiring T-Mobile.

Even if a potential buyout is blocked due to antitrust concerns, Credit Suisse analysts believe that T-Mobile could be the beneficiary of a significant breakup fee.

Potential Upside

Regardless of buyout activity, analysts see improving fundamentals for T-Mobile and the potential for the company to gain market share from competitors. “We believe that T-Mobile’s attractive pricing and improved network will have a sustained positive impact on postpaid subscriber growth.”

Credit Suisse has an Outperform rating on T-Mobile and has set a $39.00 price target for the stock. The $39.00 price target represents a 33 percent upside for the stock from current levels. T-Mobile stock has fallen 11.4 percent over the past year. It closed Monday at $29.27.

Other Analyst Action

Back in September 2014, analysts at Argus upgraded T-Mobile stock from Hold to Buy and set a $40 price target. In May, Hudson Square Research reiterated their Buy rating and raised their price target from $33 to $40.

Upcoming Earnings

The next potential catalyst for T-Mobile could be…

Read the rest of this article (and all my other articles) for free on Benzinga by clicking here

Want to learn more about the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!