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JPMorgan Chase Upgrades AT&T Stock to ‘Overweight’

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Dec. 13 2018, Updated 9:00 a.m. ET

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.”

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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.”

AT&T’s scale

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.

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