UPDATE: Credit Suisse Reiterates Outperform Rating, Lowers PT on AT&T Owing To Spectrum Purchase

In a report published Monday, Credit Suisse analyst Joseph Mastrogiovanni reiterated an Outperform rating on AT&T T, but lowered the price target from $39.00 to $38.00. In the report, Credit Suisse noted, “We are adjusting our model to include AT&T's acquisition of AWS-3 spectrum. AT&T bid $18.2B for near nationwide spectrum in the AWS-3 auction. We are reducing our DCF based target price to $38 from $39 due to the incremental net debt we include in our model for AT&T. We are forecasting that AT&T will issue $12B of new debt to help pay for spectrum. At the end of 2014, the company had over $10B of cash and short-term investments, which should cover the remainder of the purchase.” AT&T closed on Friday at $32.92.