T - AT&T's Optimistic Wireless and Broadband Trends Show Growth Analyst Upgrades Stock | Benzinga
AT&T Inc (NYSE: T) reported third-quarter FY23 operating revenues of $30.35 billion, up 1% year-over-year, beating the consensus of $28.69 billion. Adjusted EPS of $0.64 beat the consensus of $0.59.
Scotiabank analyst Jeff Fan upgraded AT&T from Sector Perform to Sector Outperform and an $18.5 price target.
Firstly, Fan sees a focus on reducing volatility in reported FCF by reducing reliance on vendor financing.
Secondly, while wireless net phone loading is coming down, churn and ARPU trends remain optimistic and are acting to reduce the dependence on loading to meet bottom-line growth goals.
Thirdly, the company’s current dividend yield has become hard to dismiss even when taken in the context of the overall higher rate environment.
In 2024, the analyst expects FCF to improve, supported by low capital intensity, improving operating earnings, and ...