Goldman Sachs Outlines Why You Shouldn't Buy AT&T (T)
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Goldman Sachs analyst Brett Feldman reiterated a Neutral rating and $27.00 price target on AT&T (NYSE: T) following its analyst meeting on 3/13. The company outlined a compelling case for how its portfolio of mobility, broadband and streaming service have been (or should be) strengthened by its material investments in C-Band spectrum, fiber and HBO Max, triggering an increase in long-term revenue forecasts. However, AT&T’s $27bn investment in C-Band spectrum has relevered the company’s balance sheet and management’s outlook for a doubling of HBO/HBO Max subs (to 120mn+) by 2025 is expected to yield EBITDA losses at HBO during this period.
The analyst stated "Despite the stock’s attractive dividend yield of 7.0%, we maintain our Neutral rating as we believe AT&T is still an execution story with further proof points required for investors to gain confidence in the company’s growth trajectory."
Shares of AT&T closed at $30.00 yesterday.
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