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AT&T Now Rated a “Buy” at Deutsche Bank (T)

Telecom giant AT&T Inc. ( T

) saw its rating upgraded to "Buy" on Monday by analysts at Deutsche Bank.

The firm also set a $31 price target on T, which represents a potential 21% upside to the stock's Friday closing price of $25.54.

A Deutsche analyst commented, "Our improved outlook is based on 4 factors: (1) an expectation that T can sustain double-digit 'core' EPS growth into 2011, (2) pot'l NT catalysts including a buyback and dividend increase, (3) overblown concerns about the pot'l loss of iPhone (Nasdaq: AAPL) exclusivity, which seems fully priced in and (4) attractive valuation, especially in light of improving consensus EPS estimates, which has historically been a positive catalyst for the stock."

AT&T shares rose 20 cents, or +0.8%, in premarket trading Monday.

The Bottom Line

We have been recommending shares of AT&T since Mar.12, 2009, when the stock was trading at $23.35. The company has a 6.58% dividend yield, based on Friday's closing stock price of $25.54.

AT&T Inc. ( T ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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