Nomura Securities Maintains a 'Buy' on AT&T (T); ADR Deep Dive

Nomura Securities maintains a 'Buy' on AT&T (NYSE: T) price target lowered from $34 to $32.

Analyst, Mike McCormack, said, "While not specific to AT&T, the impact of the iPhone on industry margins continues unabated, with Apple the only clear winner. We are hopeful that destructive margin behaviors will improve in 2012, with hopes that carriers will demand more concessions from both handset suppliers and consumers. Despite the obvious setbacks with 4Q results, we remain constructive on T shares. We believe that AT&T has set what appears to be a reasonable bar for “mid-single digit (or better) earnings growth”. Using a 5%-8% range we view the guidance range as ~$2.30 to $2.38. We already had modeled a below consensus $2.38 estimate for 2012 EPS."

For an analyst ratings summary and ratings history on AT&T click here. For more ratings news on AT&T click here.

Shares of AT&T closed at $29.45 yesterday.

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