Bank of America Securities analyst Michael Funk maintained a Buy rating on AT&T yesterday and set a price target of $34.00.
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Michael Funk has given his Buy rating due to a combination of factors that enhance AT&T’s competitive position and financial outlook. The recent acquisition of spectrum licenses from EchoStar for $23 billion significantly bolsters AT&T’s spectrum holdings, particularly in the 600MHz and 3.45GHz bands. This purchase is expected to support AT&T’s fixed wireless access strategy and strengthen its broadband and wireless offerings, which are crucial for future growth.
Additionally, the deal is anticipated to enhance AT&T’s existing agreements and revenue streams, including its 10-year, $5 billion wholesale relationship with EchoStar. The transaction is projected to yield incremental service revenue and EBITDA within 24 months of closing, with adjusted EPS and free cash flow accretion expected in the third year. These factors, along with the company’s plan to update its long-term outlook post-transaction, underpin the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $30.00 price target.
T’s price has also changed slightly for the past six months – from $26.570 to $28.560, which is a 7.49% increase.