Goldman Sachs Downgrades AT&T (T) to Neutral, Saying Verizon Is a Better Bet
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Price: $36.72 -0.05%
Rating Summary:
5 Buy, 26 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 13
Rating Summary:
5 Buy, 26 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 15 | New: 13
Trade T Now!
Goldman Sachs downgraded AT&T (NYSE: T) from Buy to Neutral and lowers thier price target from $35 to $32, following news yesterday that Verizon will start selling Apple's iPhone.
The firm's forecast indicate proportionate revenue growth at VZ will exceed that at AT&T by 4.6% in 2011 and 4.8% in 2012.
In addition, Goldman belies the differential in postpaid net adds/ARPU growth in 2011 at Verizon relative to AT&T will be steeper than most investors forecast. The firm sees Verizon adding 3.6 million postpaid with APRU growth of 5.4%, while AT&T will loss 400K postpaid with APRU growth of just 1.2%.
Goldman upgraded Verizon (NYSE: VZ) to Buy also today.
For more ratings news on AT&T click here and for the rating history of AT&T click here.
Shares of AT&T closed at $27.91 yesterday, with a 52 week range of $23.78-$30.10.
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The firm's forecast indicate proportionate revenue growth at VZ will exceed that at AT&T by 4.6% in 2011 and 4.8% in 2012.
In addition, Goldman belies the differential in postpaid net adds/ARPU growth in 2011 at Verizon relative to AT&T will be steeper than most investors forecast. The firm sees Verizon adding 3.6 million postpaid with APRU growth of 5.4%, while AT&T will loss 400K postpaid with APRU growth of just 1.2%.
Goldman upgraded Verizon (NYSE: VZ) to Buy also today.
For more ratings news on AT&T click here and for the rating history of AT&T click here.
Shares of AT&T closed at $27.91 yesterday, with a 52 week range of $23.78-$30.10.
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