Shares of AT&T Inc. (NYSE:T) are a bargain right about now, and investors would be wise to scoop some up. That’s the gist of what UBS had to say as it raised its rating for the company.
CNBC shares the firm’s take on AT&T.
UBS raised its rating of AT&T to buy from neutral on Thursday, citing a coming turnaround in the company’s operating performance and “an overly negative outlook” on AT&T shares, the firm said.
“We believe the stock is trading near all-time low valuations (and the widest gap to Verizon),” UBS analyst John Hodulik said in a note.
Hodulik has also raised his price target for AT&T from $33 to $38 a share. The firm provided additional insight in a note to clients.
“Our work suggests the company will return to EBITDA growth … given growth in Wireless & WarnerMedia and slower declines in Entertainment,” the firm said. “We believe this inflection will provide upside to shares.”
AT&T Inc. shares rose $0.41 (+1.23%) in premarket trading Friday. Year-to-date, T has declined -10.24%, versus a 10.95% rise in the benchmark S&P 500 index during the same period.