UPDATE: Piper Jaffray Raises PT to $37 on AT&T on Q2 Checks
Piper Jaffray reiterates its Overweight rating on AT&T (NYSE: T) and raises its price target from $36 to $37.
Piper Jaffray comments, "Our checks indicated better than expected adds, aided by continued low churn. We are raising our net additions for AT&T to 225k from 200k. We are modeling a 5 bps sequential reduction in postpaid churn (to 1.05%). … While we raised our net adds slightly, we lowered our upgrade rate assumption to 7% (was 7.5%). This, coupled with low churn allows us to increase our forecast for wireless EBITDA. We are now forecasting wireless EBITDA margins of 42.5% versus 41.9% previously."
T closed at $35.39 on Thursday.
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