{"id":255626,"date":"2021-05-21T17:29:00","date_gmt":"2021-05-21T14:29:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/atts-new-outlook-sparks-debate-but-also-two-stock-upgrades\/"},"modified":"2021-05-21T17:29:00","modified_gmt":"2021-05-21T14:29:00","slug":"atts-new-outlook-sparks-debate-but-also-two-stock-upgrades","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/atts-new-outlook-sparks-debate-but-also-two-stock-upgrades\/","title":{"rendered":"#\n  AT&#038;T\u2019s new outlook sparks debate\u2014but also two stock upgrades"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40dbf956378\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40dbf956378\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/atts-new-outlook-sparks-debate-but-also-two-stock-upgrades\/#Two_analysts_who_disagree_on_the_feasibility_of_AT_Ts_free-cash_flow_goals_now_both_recommend_buying_the_stock\" >Two analysts who disagree on the feasibility of AT&amp;T\u2019s free-cash flow goals now both recommend buying the stock<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/atts-new-outlook-sparks-debate-but-also-two-stock-upgrades\/#Emily_Bary\" >Emily Bary<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  AT&amp;T\u2019s new outlook sparks debate\u2014but also two stock upgrades<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Two_analysts_who_disagree_on_the_feasibility_of_AT_Ts_free-cash_flow_goals_now_both_recommend_buying_the_stock\"><\/span>\n  Two analysts who disagree on the feasibility of AT&amp;T\u2019s free-cash flow goals now both recommend buying the stock<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\">\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000278550\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Whether or not you believe AT&amp;T Inc. can meet its new financial goals, there may be value in its stock, according to two new research notes. <\/p>\n<p> While the achievability of AT&amp;T\u2019s<br \/>\n        T,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203165245\/composite\" class=\"positive\">+1.05%<\/bg-quote><br \/>\n       new outlook continues to spark debate on Wall Street, two analysts just chimed in with newly bullish views on the stock after the telecommunications giant announced it would be spinning off Warner<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Media<\/a> in a combination with Discovery Inc.<br \/>\n        DISCA,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200511275\/composite\" class=\"negative\">-0.63%<\/bg-quote><\/p>\n<div class=\"paywall\">\n       UBS analyst John Hodulik and New Street Research analyst Jonathan Chaplin disagree on whether AT&amp;T\u2019s post-spin guidance is believable, but the two analysts agree on one point: AT&amp;T shares are now worth owning following a reset of priorities and a selloff after the WarnerMedia deal announcement. <\/p>\n<p>Hodulik upgraded the stock to buy from neutral Friday, cheering the company\u2019s \u201csimplified structure and improved visibility.\u201d He\u2019s upbeat about AT&amp;T\u2019s narrowing focus on connectivity assets, lower leverage, and the expectation for better visibility into earnings growth. <\/p>\n<p>AT&amp;T shares are up 1.7% in Friday morning trading, though shares are still down 6.2% from where they traded prior to the WarnerMedia deal announcement at the start of the week.<\/p>\n<p>Hodulik also weighed in on what he said was the biggest question coming out of AT&amp;T\u2019s deal announcement: whether AT&amp;T can meet its post-spin target for upwards of $20 billion in free-cash flow in 2023. The target seems \u201cachievable,\u201d in Hodulik\u2019s view, provided that the company can grow earnings before interest, taxes, depreciation, and amortization (Ebitda). <\/p>\n<p>Hodulik\u2019s math starts with an estimated $26 billion in free-cash flow for AT&amp;T in 2021, before the company spins off the WarnerMedia assets. Thinking past the spin, he calculates $2 billion in lost free-cash flow from the sale of AT&amp;T\u2019s linear video business, a $5 billion reduction from the WarnerMedia spin, and $5 billion in increased capital expenditures. Those reductions could be partially offset by 3% to 4% Ebitda growth, resulting in roughly $4 billion in incremental cash, and $2 billion in savings from its lower debt balance, which could help the company achieve its $20 billion goal for 2023. <\/p>\n<p>He raised his price target on the stock to $35 from $32.<\/p>\n<p>New Street\u2019s Chaplin also turned bullish on AT&amp;T shares in a late Thursday note to clients, but he\u2019s still not sold on the financial targets. <\/p>\n<p>\u201cWe don\u2019t believe the guidance, but it doesn\u2019t matter,\u201d he wrote. \u201c[F]irst, the market doesn\u2019t buy the guidance either, and; second, even with much lower FCF of, say, $15 billion, they have plenty of cash to pay an $8.3 billion dividend while paying down debt. They will even be in a position to repurchase shares at some point in the next couple of years.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p><strong>Read: ViacomCBS could be a takeover target amid media merger frenzy, analyst says in double upgrade<\/strong><\/p>\n<p>Chaplin said in his note that he\u2019s been \u201cnegative for AT&amp;T in all its iterations for most of my career,\u201d and he continues to have doubts about the company\u2019s long-term potential. He called his upgrade a \u201ctactical call\u201d that reflects AT&amp;T\u2019s improved positioning after the spin announcement, whereas he doesn\u2019t anticipate that the market will \u201ctake our side on the long-term issues for at least a couple of quarters.\u201d<\/p>\n<p>He set a $35 \u201ctactical six-month\u201d price target on the stock while writing positively of AT&amp;T\u2019s plan to cut its dividend while increasing capital expenditures. <\/p>\n<p>\u201cIt may result in some changeover in the shareholder base from income investors to fundamental investors, but that impact should be temporary,\u201d he wrote. <\/p>\n<p>AT&amp;T shares have gained 4.5% so far this year as the S&amp;P 500<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.47%<\/bg-quote><br \/>\n       has risen 11.4%. <\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Emily Bary\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Emily_Bary\"><\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/marketwatch.com\/author\/emily-bary?mod=MW_author_byline\">Emily Bary<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7440-161C5C6D01E1%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# AT&amp;T\u2019s new outlook sparks debate\u2014but also two stock upgrades &#8221; Two analysts who disagree on the feasibility of AT&amp;T\u2019s free-cash flow goals now both recommend buying the stock Whether or not you believe AT&amp;T Inc. can meet its new financial goals, there may be value in its stock, according to two new research notes&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":251140,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-255626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/255626","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=255626"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/255626\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/251140"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=255626"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=255626"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=255626"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}