Morgan Stanley Resumes Overrweight, $33 Target on AT&T

Morgan Stanley resumes coverage of AT&T (NYSE: T) with an Overweight rating and a price target of $33 on an attractive risk-reward given 5.9 percent yield.

Morgan Stanley comments, "We see smoother sailing for AT&T in '12, as the impact from the loss of iPhone exclusivity, and the absence of the T-Mobile deal reduces the regulatory overhang. We are encouraged by the buyback resumption and restructuring of non-core assets. Our $33 target offers 17% total return over 12 months."

T closed at $29.60 a share yesterday.