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.
The Aroon Indicator for T entered a downward trend on March 01, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 165 similar instances where the Aroon Indicator formed such a pattern. In of the 165 cases the stock moved lower. This puts the odds of a downward move at .
The 10-day RSI Indicator for T moved out of overbought territory on February 02, 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 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Momentum Indicator moved below the 0 level on March 01, 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 February 08, 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 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
The 10-day moving average for T crossed bearishly below the 50-day moving average on February 29, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
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 February 01, 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.
T moved above its 50-day moving average on February 28, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where T advanced for three days, in of 323 cases, the price rose further within the following month. The odds of a continued upward trend are .
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 (1.176) is normal, around the industry mean (5.257). P/E Ratio (8.619) is within average values for comparable stocks, (107.874). Projected Growth (PEG Ratio) (1.322) is also within normal values, averaging (9.637). Dividend Yield (0.065) settles around the average of (0.085) among similar stocks. P/S Ratio (1.007) is also within normal values, averaging (71.085).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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 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 that the returns do not compensate for the risks. T’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
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
A.I.dvisor indicates that over the last year, T has been closely correlated with VZ. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if T jumps, then VZ could also see price increases.