Turning the Tide
AT&T Inc T is slated to announce its fourth-quarter results on Jan. 24.
Riding on Tailwinds
According to Oppenheimer, the headwinds faced by the company in transitioning to a pure connectivity provider have now become a thing of the past.
An Analyst’s Bright Prediction
The AT&T Analyst: Timothy Horan upgraded the rating for AT&T to Outperform while maintaining the price target at $21.
The AT&T Outlook: Horan highlighted the potential for the stock to benefit from “a number of tailwinds” in the upgrade note.
Growth Potential
With its network significantly improving in 2023, AT&T is raising prices on its core unlimited plans. This move could generate an additional $700-$800 million in revenue, as mentioned by the analyst.
“60% of T’s broadband subs are now fiber, where it has healthier margins and can raise rates further as it is priced below cable,” he added.
The analyst also expressed optimism that AT&T will have the ability to merge its remaining stake in DirecTV, which should deliver further cost-saving synergies. Furthermore, he stated that AT&T boasts strong free cash flows, which could grow 12% to $18.5 billion in fiscal 2024.
Market Response
T Price Action: Shares of AT&T had risen by 1.46% to $16.65 at the time of publication on Friday.
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