Raymond James analysts upgraded their rating on AT&T stock to outperform from market perform.
On Friday, analyst Frank Louthan indicated in a note to clients that a sanguine outlook on AT&T earnings’ positive growth coupled with the telecom giant’s deleveraging efforts could lead to its shares outperforming. "AT&T trades at a discount to Verizon of ~3.5 times EPS and FCF, with 250 bp higher dividend yield. We believe that the combination of positive earnings growth and delivering over the course of the year will being investors back to AT&T", Louthan mentioned in the note.
Louthan also set price target of $34 per share, which is around +12% higher compared to the stock's previous closing price.
Last week, AT&T shares trembled after the company announced a major revamp of its DirecTV Now streaming service, including a hike in package prices.