UPDATE: Argus Downgrades AT&T (T) to Hold; Math 'Doesn't Work' on Dividend
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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.
Shares of AT&T closed at $28.18 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Downgrades
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