UPDATE: J.P. Morgan Upgrades AT&T; Raises PT

According to a research report published this morning, J.P. Morgan has upgraded AT&T

from Neutral to Overweight, and has increased PT from $31 to $33. In the report, J.P. Morgan commented, " In wireless we believe AT&T could see better than expected revenue growth from tablets and ARPU growth from its existing base via price increase efforts. Wireline could benefit from stabilizing penetration in the U-Verse footprint and a rebound in enterprise spending. We expect cash return to remain high with $10.4b (5.8%) in dividends in 2012 and $5b (2.8%) in share buybacks. Going forward, cash returns to shareholders could be supported by even a small increase in revenue and lower capex as 4G wireless and U-Verse needs abate. We see current levels as a solid entry point with AT&T underperforming the S&P 500 by 8% YTD." AT&T closed yesterday at $30.45.