Wall Street’s view on AT&T
In the previous part, we looked at some aspects of AT&T’s (T) value proposition in the US telecom industry. Specifically, we looked at the integrated telecom player’s enterprise value multiples and dividend yield, as well as select metrics of Verizon (VZ), T-Mobile (TMUS), CenturyLink (CTL), and Frontier Communications (FTR).
Now we will look at select market-centric metrics and views on AT&T. Let’s start with the opinion of Wall Street’s analysts on the company.
As we can see in the above chart, out of a set of 36 recommendations by Wall Street analysts on AT&T’s stock, half were “buy” recommendations and ~44.4% of the recommendations were “hold.” The remaining ~5.6% of the analysts recommended a “sell.”
In addition, the median of target prices by Wall Street’s analysts for AT&T was $41 on May 13, 2016. The carrier’s closing price was $39.15 on the same date.
Price performance of AT&T
AT&T’s stock price movements during the past three months, as well as in the past one-month period, were in positive territory. On May 13, 2016, the company’s stock price has increased by ~6.8% and ~1.7% during the past three-month and one-month periods, respectively.
For a diversified exposure to AT&T, you may consider investing in the iShares MSCI USA Minimum Volatility ETF (USMV). The telecom company made up ~1.7% of the ETF at the end of April 2016. USMV held ~4% in telecom players such as AT&T, Verizon (VZ), and SBA Communications (SBAC) on the same date.