AT&T: Current Risk-Premiums Are Too High, Buy Confirmed

Summary:

  • Q2 earnings were in line with our expectations: after the release, we have only slightly adjusted mobility subscribers numbers estimates.
  • Free cash flow turned out to be better than expected: AT&T will likely to get to their guidance of $16 BN.
  • The recent news sentiment was terrible, although nothing critical has happened in our view.
  • We maintain a Buy rating on AT&T: risks that have arisen recently seem not that critical to us, while valuation remains too cheap.

AT&T Stock Jumps On Strong Earnings Report

Brandon Bell

Investment Thesis

AT&T (NYSE:T) has ran into terrible news sentiment once again. Despite the company showing quite good Q2 performance, investors still appear to be afraid of the possible lead cable investigation outcomes and DISH (


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