Analysts Believe AT&T Inc. (T) Could Be a $33.79 Stock

Wall Street’s most bullish AT&T Inc. (NYSE:T) analysts are predicting the share price to blow past $43 per share during the next 12 months. The current median share price forecast by them is $34, suggesting that the stock could increase 12.29% in that time frame. The average price target of $33.79 calls for a nearly 11.59% increase in the stock price.

AT&T Inc. (NYSE:T) rose 0% in recent trade and currently has a stock-market value of $221.13B. The shares finished at $30.28, after trading as low as $30.21 earlier in the session. It hit an intraday high Thursday at $30.49. Trading activity significantly weakened as the volume at ready counter decreased to 21,284,584 shares versus 27,870,135 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 32,459,266 shares. The stock is now 12.99% above against its bear-market low of $26.8 on December 26, 2018. It has retreated -23.32% since it’s 52-week high of $37.34 reached in March. Now the market price is down -19.02% on the year and up 6.1% YTD.

T stock’s 50 day simple moving average (SMA 50) price is $30.34 and its 200-day simple moving average (SMA 200) price is $31.42. The company’s stock currently has a total float of 7.28B shares. Its weekly volatility is hovering around 1.43% and felt 1.5% volatility in price over a month. On the upside, the share price will test short term resistance at around $30.44. On a downside, the stock is likely to find some support, which begins at $30.16. The failure to get near-term support could push it to $30.05.

It had seen a positive analyst call from Citigroup, which upgraded the stock from Neutral to Buy on December 11. Analysts at JP Morgan, shed their negative views on December 03 by lifting it fromNeutral to Overweight. The stock won favor of MoffettNathanson analysts who expressed their confidence in it using an upgrade from Sell to Neutral on November 26.

When looking at valuations, AT&T Inc. (T) has a cheap P/E of 10.93x as compared to industry average of 55.32x. Moreover, it trades for 8.33 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.2x price/book and 1.3x price/sales. Compared to others, AT&T Inc. is in a different league with regards to profitability, having net margins of 11.3%. To put some perspective around this, the industry’s average net margin is 6.8%. T’s ROE is 11.1%, which is also considerably better than the industry’s ROE of 9.25%. It’s also not liquid in the near term, with a current ratio of 0.8. The stock has a debt/capital of 0.96.

Shares of T have dropped -1.4% since the company’s most recent earnings report. Over the past 12 fiscal quarters, AT&T Inc. (NYSE:T) has topped consensus earnings estimates in 5 quarters (41%), missed earnings in 3 quarters (25%), whereas at 4 occasion EPS met analyst expectations. T last reported earnings that receded expectations. The company raked in $0.86 per share, 230.77% change on the same period last year. That was worse than consensus for $0.86. Revenue for the recent quarter stood at $47.99 billion, up 15% on last year and below the $48.49 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $44.2 billion to $45.91 billion, which should be compared with $40.83 billion generated last year. EPS is seen in a range of $0.79 to $0.92, against the $0.91 reported a year ago.