JPMorgan Chase upgrades AT&T stock
On December 3, JPMorgan Chase upgraded AT&T (T) stock from a “neutral” to an “overweight” with a 12-month price target of $38. This price target represents a potential upside of ~26.1% from its December 7 closing price of $30.14.
As reported by CNBC, in a note to clients, JPMorgan’s Philip Cusick stated that AT&T’s chair, Randall Stephenson, “is comfortable that the combination of improved wireless performance, mix shift to media, and better pricing in Entertainment should make 2019 trends markedly better than those in 2018.”
However, JPMorgan downgraded AT&T’s better-performing competitor Verizon (VZ) from an “overweight” to a “neutral.” Cusick stated, “As much as we like Verizon’s consistent and improving execution, the combination of a new management team and reporting lines with the run-up in shares make the risk/reward less compelling than peers AT&T and Comcast.”
As of December 7, AT&T was the second-largest wireless carrier, with a market cap of $219.4 billion. Meanwhile, Verizon’s, T-Mobile’s (TMUS), and Sprint’s (S) market caps were $238.3 billion, $55.7 billion, and $24.5 billion, respectively. Market cap represents a company’s market value, which is its shares outstanding multiplied by its stock price.