UPDATE: Argus Downgrades AT&T (T) to Hold; Math 'Doesn't Work' on Dividend

July 27, 2021 7:35 AM EDT
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Price: $27.53 -0.25%

Rating Summary:
    13 Buy, 29 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 7 | Down: 15 | New: 24
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(Updated - July 27, 2021 9:25 AM EDT)

Argus analyst Joseph Bonner downgraded AT&T (NYSE: T) from Buy to Hold.

  • We are lowering our rating on AT&T in anticipation of a dividend cut as the company sheds assets acquired over the last few years.
  • Management has assured investors that AT&T will maintain a dividend in the “95th percentile” of companies; however, in our view, the math doesn’t work after taking the DirecTV and WarnerMedia spinoffs into account.
  • On the positive side, we think that AT&T’s wireless Mobility business is performing well coming out of the pandemic and that management is right to focus on this business.
  • We are raising our 2021 adjusted EPS estimate to $3.27 from $3.19 and maintaining our 2022 forecast of $3.25.

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 $28.18 yesterday.


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