Nomura Securities Maintains a 'Buy' on AT&T (T); Adjusting Estimates After Q3 Review

Nomura Securities maintains a 'Buy' on AT&T (NYSE: T) price target of $34.00.

Nomura analyst, Mike McCormack, said, "We continue to favor T shares for large-cap telecom investors. On balance, 3Q11 results were somewhat disappointing, as weaker-than-expected wireless additions, decelerating ARPU growth, and likely temporary wireless margin relief keep us concerned about the outlook for the economics of the wireless business. That said, Wireline trends are showing signs of stabilization, and our concerns with wireless are industry wide, not AT&T specific. With a compelling relative valuation, strong free cash-flow generation and a sustainable and strong dividend, we believe patient investors will be rewarded for owning T shares. Our FY11E EPS goes from $2.37 to $2.29 and 2012E goes from $2.57 to $2.50."

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 $28.99 yesterday.

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