Canaccord Genuity Raises Price Target on AT&T (T) Following 2Q15

Canaccord Genuity maintained at Hold rating on AT&T (NYSE: T), and raised the price target to $35.00 (from $34.00) following 2Q15 results. Analyst Gregory Miller said that they have maintained a HOLD rating on the stock, with a consistent $34-$35 price target, and sees no reason to change at this time.

Miller commented, "With the 2Q15 report reported last evening after the close that produced wireless service growth and EBITDA exceeding both our and the Street’s expectations, and with the formal announcement that the FCC has voted to conditionally approve the long-proposed DirecTV merger, we are not surprised to witness the stock trade higher. Considering the continued delays in closing the deal that was expected in late June resulting in increased investor tension in addition to the expectation that wireless service ARPUs would follow the recent trajectory as more lower-ARPU Next customers sign on – we note more than 1/3 of the base remains on a subsidized plan – we suspect some relief was in order. We believe the near-term deviation from expectations is what has driven the stock back to our long held price target. However, until we have a better picture of the drivers of the stability it is difficult to predict where the stock goes from here. Therefore we remain HOLD rated on the stock."

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 $34.29 yesterday.

You May Also Be Interested In

• BRF - Brasil Foods S.A. (BRFS3:BZ) (BRFS) PT Raised to BRL19 at Itau BBA
• LuxUrban Hotels Inc. (LUXH) PT Lowered to $4 at Jones Trading
• Stifel Upgrades Barry Callebaut AG (BARN:SW) (BYCBF) to Buy