📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

AT&T stock remains top pick with solid financial growth prospects - Citi

EditorEmilio Ghigini
Published 11/09/2024, 07:56 pm
T
-


On Wednesday, Citi updated its stance on AT&T (NYSE:T) shares, raising the price target to $24 from the previous $21 while maintaining a Buy rating. The adjustment reflects the firm's expectations for AT&T's solid financial growth and recent changes in market conditions.


The revision in the price target is attributed to a combination of factors, including a pull-back in 10-year treasury rates and an expansion of the target core enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) multiple to 6.5x, an increase from the earlier 6.0x.


Citi's outlook on the telecommunications sector is positive, noting an improvement in stock valuations which is believed to be a result of growing confidence in the fundamental market environment. The firm also highlighted positive signals from carriers regarding the wireless competitive landscape and potential pricing strategies that could influence future annual service revenue growth.


The analyst's commentary suggests that while there is a general neutrality toward the initial promotions for the new iPhone launch, there is no expectation of a device upgrade super cycle for the remainder of the year and into the first half of 2025. This comes after Apple (NASDAQ:AAPL)'s introduction of its latest iPhone lineup.


AT&T remains Citi's top choice within the coverage group, indicating a favorable view of the company's stock amidst the broader telecommunications industry. The price target increase to $24 signifies Citi's confidence in AT&T's ability to achieve the anticipated financial growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.