AT&T Inc T is scheduled to report its fourth-quarter results on Jan. 24.
The headwinds faced by the company in transitioning to a pure connectivity provider have “moved to the rearview,” according to Oppenheimer.
The AT&T Analyst: Timothy Horan upgraded the rating for AT&T to Outperform while keeping the price target unchanged at $21.
The AT&T Thesis: The stock is poised to benefit from “a number of tailwinds,” Horan said in the upgrade note.
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With its network improving significantly in 2023, AT&T is raising prices on its core unlimited plans, which could generate an incremental $700-$800 million in revenue, the analyst mentioned.
“60% of T’s broadband subs are now fiber, where it has healthier margins and can raise rates further as it is priced below cable,” he added.
“We believe T will have the ability to merge its remaining stake in DirecTV, which should deliver further cost-saving synergies,” Horan wrote. The analyst further stated that AT&T has strong free cash flows, which could grow 12% to $18.5 billion in fiscal 2024.
T Price Action: Shares of AT&T had risen by 1.46% to $16.65 at the time of publication Friday.
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