UBS Reiterates Buy on AT&T (T) Ahead of Analyst Meeting

UBS reiterated a Buy rating and $42.00 price target on AT&T (NYSE: T) ahead of the company's analyst meeting. AT&T reiterated guidance for full-year adjusted EPS of $2.62-2.68, double-digit revenue growth and continued consolidated margin expansion despite Fx pressure.

Analyst John Hodulik commented, "In advance of an analyst meeting tomorrow, AT&T reiterated guidance for full-year adjusted EPS of $2.62-2.68 (UBSe $2.70 ex-DTV; $2.61 inc. DTV), double-digit revenue growth (UBSe 12% incl. 5 months of DTV) and continued consolidated margin expansion (UBSe 31.2% vs. 30.8% AT&T standalone in 2014) despite Fx pressure. Its recent 8-K had suggested, applying the 200:1 Fx ratio in Venezuela would have lowered DTV's revenues by $846M in 2014 and $188M in 1Q15 and caused an operating loss. AT&T expects 3Q capex to be above 2Q's $4.7B level and FCF to exceed $4.5B."

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 $32.07 yesterday.

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