AT&T Inc shares was upgraded to Buy from Neutral by UBS analyst John C. Hodulik. Hodulik also hiked the price target to $35 from $32.
According to the analyst, AT&T’s decision to spin-off its streaming business with Discovery Communications could simplify the structure for AT&T. “We see a favorable risk-reward at the current valuation given a more simplified set of connectivity-based assets, lower dividend payout, better visibility into EBITDA growth and lower leverage,” Hodulik said.
Hodulik said that a goal of free cash flow of $20 billion is achievable by 2023. Interest costs will be $2 billion lower, according to the analyst.
The media asset merger with Discovery will lower AT&T’s dividend payout by around 45%. The deal structure could lead to $7 to $8 per share in a one-time tax-free payment via shares of DiscoveryWarner, which represents four to five years of lump-sum dividend payment, Hodulik said.
T's Aroon Indicator triggered a bullish signal on October 29, 2024. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 238 similar instances where the Aroon Indicator showed a similar pattern. In of the 238 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where T advanced for three days, in of 314 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for T moved out of overbought territory on October 03, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 56 cases where T's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on November 06, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on T as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for T turned negative on November 04, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 54 similar instances when the indicator turned negative. In of the 54 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where T declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
T broke above its upper Bollinger Band on October 23, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. T’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.212) is normal, around the industry mean (4.726). P/E Ratio (8.883) is within average values for comparable stocks, (113.894). Projected Growth (PEG Ratio) (1.361) is also within normal values, averaging (8.093). Dividend Yield (0.063) settles around the average of (0.059) among similar stocks. P/S Ratio (1.037) is also within normal values, averaging (13.458).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 81, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a provider of dsl internet, local and long-distance voice and data services
Industry WirelessTelecommunications