AT&T: Q3 Marks An Inflection Point

Summary:

  • AT&T recently provided guidance for its free cash flow target and also its deleverage plan.
  • Given the updated guidance, I expect its growth CAPEX allocation to drastically improve in the next 1~2 years.
  • I further expect such an improvement to be an inflection point for its stock prices.
  • The improvement could fundamentally change the prevailing market sentiment and T’s growth CAPEX allocation.
Turnaround.

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T stock: Q3 review

My last article on AT&T stock (NYSE:T) stock focused on its DirecTV divestiture as reflected in its title “AT&T: DirecTV Divestiture Creates More Upside Potential”. In that article, I argued for a BUY rating as this


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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