Here’s Why Oppenheimer Raised Price Target for AT&T Inc (T)
Oppenheimer analyst Timothy Horan weighed in today with a favorable report on AT&T Inc. (NYSE:T), raising the price target to $40 (from $36), while keeping the rating on the stock at Outperform. The new price target implies an upside of 13% from current levels.
Horan explained his new rating noting, “We have updated our pro forma model with DTV and T’s international wireless operations, and believe T stock looks undervalued. We believe that cross selling and new services can drive improved FCF growth vs. our previous estimates and that wireless pricing is set to improve, with S/TMUS poised to pull back on unlimited data. In addition, now that AT&T is winding down Project VIP, we forecast greater FCF generation, which makes the dividend yield look attractive. Last, with TMUS introducing a device leasing option, we believe the incumbents may respond, which could provide a near-term EBITDA lift.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Timothy Horan has a total average return of 1.6% and a 65.1% success rate. Horan has a 4.8% average return when recommending T, and is ranked #1427 out of 3683 analysts.