AT&T Inc. (NYSE: T) is likely to outpace Verizon Communications Inc. (NYSE: NYSE:VZ) over the next few months, according to Raymond James.
The AT&T Analyst: Frank Louthan upgraded AT&T from Outperform to Strong Buy while maintaining a $24 price target.
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The AT&T Takeaways: While telcos face significant headwinds during an economic downturn, AT&T’s business is less cyclical and has better earnings growth than peers, Louthan said in the upgrade note.
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In a highly competitive environment, both AT&T and Verizon are marketing aggressively, the analyst said. Yet AT&T is achieving “superior wireless subscriber adds,” accelerating earnings growth and EBITDA margin expansion, he said.
“As such, we believe AT&T can continue to outperform Verizon for the next few quarters,” Louthan said.
“We continue to believe a more focused vision along a simpler line of business creates a solid scenario for share price appreciation, and a solid, total return,” he added.
T Price Action: Shares of AT&T were trading 3.33% higher at $17.67 Monday morning.
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Latest Ratings for T
| Mar 2022 | TD Securities | Downgrades | Buy | Hold |
| Feb 2022 | JP Morgan | Upgrades | Neutral | Overweight |
| Feb 2022 | Raymond James | Maintains | Outperform |
View the Latest Analyst Ratings
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