AT&T stock gets a new upgrade after its report

Analysts at Raymond James upgraded the AT&T stock rating from Outperform to Strong Buy and set a price target of $24 per share.

The company’s upgrade of rating was caused by several reasons. First, at the end of last week, Truist raised the company’s rating to Buy. Second, according to Raymond James analysts’ outlook, the AT&T stock might outperform its rival Verizon within a few months. It’s explained by the fact that AT&T now is increasing its base of clients, expanding EBITDA margins, and demonstrating EPS growth.

In their commentary, the analysts point out to the fact that a targeted development within a chosen business area is a reliable scenario that ensures both a stock growth and overall profits. In this regard, AT&T is confidently proving its efficiency by exact numbers, and the upgraded rating of the company’s shares corresponds with the real state of affairs.

The analysts also outlined that usually telecommunications stocks aren’t prone to show great results during the time of economic recessions. However, in this case, AT&T has already taken into account all the associated risks.

Despite the fact that AT&T differs from other similar companies by its simpler development history with less cyclical business and better profit growth, the company’s stock are traded below the 2, 5, and 10-year average P/E.

Summarizing all the facts, the analysts conclude that although the telecom stock isn’t a protective one at the moment, the AT&T’s performance definitely inspires confidence and the company’s shares aren’t expected to weaken further.