Piper Maintains Overweight on AT&T, Inc. (T)

Piper Jaffray is maintaining its Overweight rating and $34 price target on shares of AT&T, Inc.

, after the release of 4Q10 results on Thursday. In a note to clients, Piper Jaffray compared its estimates with the actual 4th quarter results of AT&T. Total revenues, wireless service revenue, adjusted EBITDA and wireless EBITDA margins were all below the analysts' forecast. Total wireless net adds and postpaid net adds were below estimate, while the net U-verse customer adds were ahead of estimate. Finally, postpaid churn, total ARPU and adjusted EPS were in line with the forecast. Based on a four-year discounted cash flow analysis, the analysts rate AT&T overweight. It also implies that the PE is 13.6 times of the estimate. However, as stated in the note, risks for AT&T include increasing competitiveness in the wireless industry, negative impacts from the continued weakness in the economy and the loss of revenue when AT&T loses the iPhone exclusivity. At the time of posting, shares of AT&T were trading at $27.50.