2024-04-02 12:34:08 ET
Summary
- AT&T has been viewed as a "show me" stock, with investors waiting for results before buying in.
- I see good odds for it to get over this hurdle soon.
- I see good catalysts for it to reach the 2024 FCF promise of $17 billion-$18 billion.
- Reaching this goal could allow it to be viewed as a successful turnaround story, resume its dividend growth, and drastically change market sentiment.
A "show me" stock
AT&T Inc. ( T ) has largely become a "show me" stock recently, in my view. That is, I think investors are saying "show me" the results before they're convinced to buy in. Of course, there are good reasons. It's difficult to argue against the attractiveness of the company's stock price (a sector leader trading at 7.9x FWD P/E). However, there are indeed many uncertainties about the company's future performance. I cannot blame anyone for deciding to wait and see if the company can deliver on its promises or potential before investing....
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For further details see:
AT&T: Sensing An Inflection Point Approaching