DISCB - Citi keeps AT&T on positive catalyst list as spin-off record date arrives

An updated model from Citi ahead of the AT&T/WarnerMedia spin-off has the bank maintaining its Buy rating on AT&T (NYSE:T), expecting room for multiple expansion amid prospects of growing revenue and EBITDA. The new model cuts back on an announced net debt reduction of $43 billion by $5.6 billion, for working capital adjustments. It also has analyst Michael Rollins presenting a pro forma model that reinforces that AT&T "needs to step up its execution on expense management to improve normalized RemainCo EBITDA during the second half of this year and into 2023. Rollins is keeping AT&T on Citi's positive catalyst watch list, with upcoming moves including the completion of the Warner Bros. Discovery (WBD) deal with Discovery (DISCA +0.4%), solid strategic volume performance, and better pro forma EBITDA in the second half of 2022. Citi's still below guidance for 2023 EBITDA and free cash flow, it says, but a pro

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Citi keeps AT&T on positive catalyst list as spin-off record date arrives