One day after reporting fourth-quarter figures that disappointed many investors, AT&T (NYSE: T) stock bounced back nicely on Thursday. Buoyed by several analyst price target increases, the sturdy telecom’s share price closed the session almost 3% higher. That was well ahead of the 0.3% bump experienced by the S&P 500 index.
Three analysts, three raises
On Thursday, no fewer than three AT&T researchers upped their price levels on the stock.
Of the trio, the meatiest raise came from DZ Bank’s Matthias Volkert, who added $1.50 per share to his target for a new figure of $17.50. This doesn’t make Volkert a bull, though, as the analyst maintained the firm’s hold recommendation.
More modest bumps came from TD Cowen’s Gregory Williams and Scotiabank prognosticator Jeff Fan. The former pushed his price target up to $21 per share from the preceding $20, although like Volkert he kept the equivalent of a hold recommendation on the telecom company. The latter’s new price target is $22 from $21, yet Fan is more positive on AT&T’s prospects — he has kept his sector outperform (read: buy) tag intact.
Some clearly felt the market overreacted on Wednesday
The Wednesday sell-off, broadly speaking, was likely a reaction to AT&T’s profitability guidance for full-year 2024, which came in well below the consensus analyst estimate.
Yet there was plenty for shareholders to be encouraged about, including the company’s still-robust cash flow, which feeds the high-yield dividend the company continues to crank out for its investors. It should also be kept in mind that despite its big size, AT&T managed to grow its top line on a year-over-year basis in the quarter.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia. The Motley Fool has a disclosure policy.
Why AT&T Stock Topped the Market Today was originally published by The Motley Fool