Nomura Securities Maintains a 'Buy' on AT&T (T); Positive Comments from CFO
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Price: $16.12 --0%
Rating Summary:
20 Buy, 29 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
Rating Summary:
20 Buy, 29 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
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Nomura Securities maintains a 'Buy' on AT&T (NYSE: T) price target of $34.00.
Nomura analyst, Mike McCormack, said, "Following comments from AT&T’s CFO, at a conference, it is clear that smartphone upgrades are running well ahead of expectations, resulting in severely degraded margins. We are lowering our 4Q11 and 2012 margin estimates to 30.2% and 39.7%, respectively. We reduced our 2011E EPS from $2.28 to $2.18 and 2012E from $2.49 to $2.39. We are hopeful that new upgrade policies will help reduce upgrade activity as 2012 progresses, but remain unconvinced that the industry structure allows for such policies to hold long term. With shares trading at a meaningful discount to peers, low margin expectations and a 6% dividend yield, we maintain our positive stance on the shares."
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 $29.40 yesterday.
Nomura analyst, Mike McCormack, said, "Following comments from AT&T’s CFO, at a conference, it is clear that smartphone upgrades are running well ahead of expectations, resulting in severely degraded margins. We are lowering our 4Q11 and 2012 margin estimates to 30.2% and 39.7%, respectively. We reduced our 2011E EPS from $2.28 to $2.18 and 2012E from $2.49 to $2.39. We are hopeful that new upgrade policies will help reduce upgrade activity as 2012 progresses, but remain unconvinced that the industry structure allows for such policies to hold long term. With shares trading at a meaningful discount to peers, low margin expectations and a 6% dividend yield, we maintain our positive stance on the shares."
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 $29.40 yesterday.
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