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Why Analysts Lowered Their Price Target for AT&T


Jan. 25 2019, Published 1:06 p.m. ET

Analysts on AT&T stock

AT&T (T) is slated to announce its Q4 earnings results on January 30. Let’s look at Wall Street’s recommendations for AT&T stock ahead of its earnings release. As of January 23, according to a recent Reuters survey, which included 31 investment research firms covering AT&T stock, ~48% of analysts have a “buy” recommendation for the stock, ~45% of them have given it a “hold,” and the remaining ~7% of them have given it a “sell” recommendation. AT&T stock has fallen ~16.9% in the trailing-12-month period and risen ~1.0% in the last five trading days.

On January 23, analysts had a consensus 12-month target price of $34.32 on AT&T, which implies a 12-month return potential of ~11.1% for the stock over the next 12 months. AT&T ended trading at a closing price of $30.89 on January 23. The target price has fallen from $34.36 a month ago.

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Analysts’ revenue expectations

Analysts expect AT&T to post revenues of $48.5 billion in the fourth quarter to take the total revenues for 2018 to $171.1 billion, which represents ~6.4% growth from $160.8 billion in 2017. Analysts expect the company’s revenues to increase ~8.1% YoY to $185.0 billion in 2019.

In comparison, Verizon’s (VZ) revenue is expected to grow ~1.4% YoY to $34.4 billion in the fourth quarter, while T-Mobile’s (TMUS) revenue is expected to rise ~5.8% YoY to $11.4 billion. Sprint’s (S) revenue is expected to increase ~2.2% YoY to $8.4 billion in the third quarter of fiscal 2018, which ended on December 31.


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