KeyBanc analyst Brandon Nispel maintained a Hold rating on AT&T Inc (NYSE:T).
The analyst noted that the 4Q results were mixed. Total Wireless service revenue in Mobility and Business Wireline revenue were below expectations, and adjusted EBITDA was below consensus for these two segments.
While subscriber phone net adds of 526K beat expectations, phone net adds decelerated year-on-year.
From his point, 2024 guidance appears achievable but not necessarily conservative or beatable.
The analyst noted better prospects for Verizon Communications Inc (NYSE:VZ), which is accelerating subscriber growth, Wireless service revenue growth, and adjusted EBITDA growth.
Verizon’s more incredible broadband subscriber growth and less exposure to Business Wireline provide a higher-quality asset base. Verizon’s free cash flow is of higher quality, given AT&T’s contribution from DTV.
The analyst projected first-quarter revenue and EPS of $30.53 billion and $0.51 for AT&T.
Oppenheimer analyst Timothy Horan maintained a Buy rating on AT&T with a price target of $21.
Horan noted that AT&T has successfully transitioned itself to a pure connectivity provider, a 2-3 year process that pressured it to underperform the market and peers. ...