Latest News

AT&T stock jumps after J.P. Morgan turns bullish, citing valuation in wake of WarnerMedia spinoff

0

Shares of AT&T Inc.
T,
+5.27%

hiked up 4.1% in premarket trading Monday, after J.P. Morgan analyst Philip Cusick turned bullish on the telecommunications and media giant, citing an “attractive” valuation. Cusick effectively upgraded AT&T by resuming coverage with a overweight rating after nearly a year of restriction, up from his previous rating of neutral. He set a $22 stock price target, which implies about 21% upside from Friday’s closing price of $18.22. The upgrade comes after AT&T spun off last week its WarnerMedia business in a deal with Discovery Inc., with the new company set to trade Monday as WarnerBros. Discovery Inc.
WBD,
+0.63%
.
Cusick said the spinoff helps AT&T management focus on its wireless business and on growing its broadband offerings. While he’s a “wary” on the wireless industry overall, he believes at Friday’s close AT&T shares “seem like an attractive risk/reward and we believe investors should look to capture this discount before it closes.” The stock has dropped 25.9% year to date, while the SPDR Communication Services Select Sector ETF
XLC,
-0.12%

has lost 12.4% and the S&P 500
SPX,
-0.74%

has declined 5.8%.

Norway Consumer Price Inflation At 3-Month High

Previous article

How the AT&T Spinoff Has Complicated Trading in Its Stock

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.

More in Latest News