Kaufman Bros. Starts AT&T (T) at Hold; Recession-Resistant Businesses with Strong Dividend Yield
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Price: $24.89 +1.26%
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 9
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Kaufman Bros. initiates coverage on AT&T (NYSE: T) with a Hold. PT $31.
Kaufman analyst says, "AT&T's positioning in the telecom marketplace is enviable. Despite this, its overall size, a declining wireline business due primarily to voice, and an industry transition in wireless from customer growth to revenue growth per customer, share appreciation may be limited. Offsetting the limited growth prospects are a defensible, recession-resistant cash flow profile and a 5.5% current dividend yield, which some investors will likely find attractive. We are initiating coverage of AT&T with a HOLD rating and a $31 price target, which represents 13.2x our 2011 EPS estimate of $2.35 and 12.7x our 2012 EPS estimate of $2.45, in line with the multiple of the S&P 500."
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 $30.72 yesterday.
Kaufman analyst says, "AT&T's positioning in the telecom marketplace is enviable. Despite this, its overall size, a declining wireline business due primarily to voice, and an industry transition in wireless from customer growth to revenue growth per customer, share appreciation may be limited. Offsetting the limited growth prospects are a defensible, recession-resistant cash flow profile and a 5.5% current dividend yield, which some investors will likely find attractive. We are initiating coverage of AT&T with a HOLD rating and a $31 price target, which represents 13.2x our 2011 EPS estimate of $2.35 and 12.7x our 2012 EPS estimate of $2.45, in line with the multiple of the S&P 500."
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 $30.72 yesterday.
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