Macquarie Upgrades AT&T (T) to Outperform

Macquarie upgraded AT&T (NYSE: T) from Neutral to Outperform with a price target of $37.00 (from $33.00) on expected DTV deal approval.

Kevin Smithen commented, "With the much-feared Q1 print out of the way and press reports last evening suggesting US regulators will bless the DTV deal while opposing the Comcast bid for DTV, we are recommending that investors begin to buy shares of T now, ahead of formal deal approvals and likely share ‘flowback’ from DTV holders. Our view is that T shares could trade sideways for 2-3 months or could trade up ~10% but downside looks minimal. We've met with dozens of global income and telco investors over the past few weeks and believe that current sentiment/positioning on T is even worse than we had previously thought, but that interest in our previous 'warming up' note on T was quite high. We feel a confluence of factors and a 'mean reversion' trade relative to VZ, CMCSA and utilities will drive shares of T to $37 over the next year regardless of the overall market’s direction."

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 $32.86 yesterday.

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