AT&T price target lowered to $29 from $31 at Wells Fargo

Wells Fargo lowered the firm’s price target on AT&T (T) to $29 from $31 and keeps an Overweight rating on the shares. While the firm acknowledges that a more aggressive Verizon (VZ) could further slow postpaid phone net adds, Wells thinks consensus expectations look achievable – while AT&T will continue to benefit from fiber/mobile convergence tailwinds plus FWA growth in the years ahead. The $23B spectrum deal will be modestly dilutive to free cash flow estimates and also further defer additional buybacks, which tilts the firm’s preference in favor of T-Mobile (TMUS).