AT&T Inc T is scheduled to report its fourth-quarter results on Jan. 24.
The challenges faced by the company in shifting to a pure connectivity provider are now in the past, according to Oppenheimer.
The AT&T Analyst: Timothy Horan upgraded the rating for AT&T to Outperform while keeping the price target unchanged at $21.
The AT&T Outlook: The stock stands to benefit from “a number of tailwinds,” Horan said in the upgraded analysis.
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With its network showing significant improvement in 2023, AT&T is raising prices on its core unlimited plans, likely resulting in an additional $700-$800 million in revenue, the analyst noted.
“60% of T’s broadband subscribers are now on fiber, where it has healthier margins and can raise rates further as it is priced below cable,” he added.
“We believe T will have the ability to merge its remaining stake in DirecTV, which should deliver further cost-saving synergies,” Horan wrote. The analyst further mentioned that AT&T has robust free cash flows, expected to grow by 12% to $18.5 billion in fiscal 2024.
T Price Action: Shares of AT&T had risen by 1.46% to $16.65 at the time of publication Friday.
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