UPDATE: Credit Suisse Assumes Coverage on AT&T with Outperform Rating, $36.50 PT
In a report published Monday, Credit Suisse assumed coverage on AT&T (NYSE: T) with an Outperform rating and $36.50 price target.
Credit Suisse noted, “We are assuming coverage of AT&T. We maintain our estimates, target price and our Outperform rating. We believe AT&T and Verizon will continue to report solid results for 2H12, with wireless churn continuing to improve y/y and margins significantly better. We don't think 3Q12 results will be a major catalyst - investors are aware of the 3Q12 iPhone launch. We think full 2H12 results will provide proof for our thesis - upgrades will fall y/y in 2H12 (although likely higher in 3Q given the iPhone), contrary to expectations, and margins will be better. We will be watching these data points closely when T reports its 3Q12 results on Weds, as improvement in these data points (e.g., churn, upgrades) remains at the core of our overweight thesis.”
AT&T closed on Friday at $35.32.
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Tags: Credit Suisse