Raymond James Upgrades AT&T (T) to Outperform, Investors are Paid 7% to Wait
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(Updated - January 4, 2021 7:58 AM EST)
Raymond James analyst Frank Louthan upgraded AT&T (NYSE: T) from Market Perform to Outperform establishing a price target of $32.00 on the belief that the company offers a solid total return story over the next 12 months. The analyst had downgraded the stock at the onset of COVID-19 based on the unknown impact of the pandemic on the WarnerMedia unit and the general complexity of the story relative to its peer Verizon. Now the analyst thinks most of this bad news has been baked in.
The analyst made a compelling case for long term investors stating "WarnerMedia is not yet back to its full potential, and we believe there is more that can go right during the next 12 months than can get worse for AT&T. Throw in the fact that shares are heavily shorted, and we believe this is a recipe for upside. Large cap value names are hard to come by, and we think investors who can wait a few months for a mean reversion while locking in a 7% yield should be rewarded for buying AT&T at current levels".
Shares of AT&T closed at $28.76 yesterday.
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