AT&T Inc. (NYSE:T) Shares Price Objective Boosted By $3

AT&T Inc. (NYSE:T) Shares Price Objective Boosted By $3

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Close on the heels of AT&T Inc. (NYSE:T) reporting its fourth quarter results, S&P Capital IQ analyst Zino increased his target price from $42 to $45 on the stock. However, he maintained his Buy rating on the company’s shares. The analyst sees positive in the momentum in wireless net additions.

The analyst’s price target on AT&T is based on an enterprise value to EBITDA of 7.1X his 2018 estimate, which is above peers due to strong product offerings, as well as, higher network. The company reported fourth quarter earnings of 66 cents a share, which came in line with the Capital IQ consensus. Sales, which fell 0.7 percent in the December quarter, faced pressures from legacy wirele drop though there was growth in mobility, as well as, strategic business services.

“We positively view momentum in wireless net additions (1.5M in U.S./1.3M in Mexico) and from DIRECTV NOW, which added over 200,000 subscribers,” the analyst told his clients in a research note.

Following the December quarter results, Zino adjusted his EPS estimate from $2.99 to $2.96 for the year 2017 and established EPS estimate of $3.08 for the year 2018.
At last check, AT&T shares are trading down 0.34 percent in the pre-market trading.