Barclays argued Monday that AT&T is on the rise and now is the time to buy the stock.
Analysts led by Kanan Venkateshwar upgraded the company’s rating from “equal weight” to “overweight,” but maintained their price target of $20. AT&T stock was down 0.5% in afternoon trading after rising 2.6%. The S&P 500 fell 1%.
“that’s all…
Barclays argued Monday that AT&T is on the rise and now is the time to buy the stock.
Analysts led by Kannan Venkateshwar upgraded the company’s rating from “equal weight” to “overweight,” but maintained their price target of $20. AT&T stock was down 0.5% in afternoon trading after rising 2.6%.of
S&P500
is down 1%.
“While AT&T has seen improved visibility into its strategy and cash flow in recent years, and a gradual shift toward a more stable execution story, its valuation continues to be weighed down by traditional investor perceptions,” analysts said. are writing.
“Coupled with the relatively strong performance expected this year, this presents a unique opportunity for real catalysts,” they said.
Barclays cited several reasons to be optimistic about AT&T. For one, it has lower churn, or customer loss, rates than its peers, which analysts say forces rivals Verizon Communications and T-Mobile to compete “more directly.” Ta.
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“Despite having a clearer growth outlook and better growth profile than Verizon, AT&T is not only competing against Verizon but also against its cable peers, which have far greater structural growth issues and balance sheet constraints. is also trading at a deep discount,” analysts said.
Telcos reported mixed quarterly profits last week. In Monday trading, Verizon stock fell 1.2% and T-Mobile stock fell 0.3%.
Email Emily Dattilo at emily.dattilo@dowjones.com.
