Bank of America Securities analyst Matthew Griffiths has maintained their bullish stance on T stock, giving a Buy rating yesterday.
Matthew Griffiths has given his Buy rating due to a combination of factors surrounding AT&T’s strategic moves and financial positioning. One of the key reasons is AT&T’s potential acquisition of Lumen’s consumer fiber operations, which aligns with its strategy to expand its fiber network. This acquisition would not only enhance AT&T’s fiber footprint but also provide synergies that could improve the company’s financial performance.
Additionally, AT&T’s strong liquidity position, with significant cash reserves and expected cash inflows from various transactions, supports its ability to fund this acquisition without financial strain. The complementary nature of Lumen’s network, with minimal overlap with AT&T’s existing operations, presents an opportunity for growth and increased market penetration. Furthermore, AT&T’s plans to decommission copper infrastructure and replace it with more cost-effective alternatives could lead to substantial cost savings, further justifying the Buy rating.
In another report released yesterday, Goldman Sachs also reiterated a Buy rating on the stock with a $29.00 price target.