AT&T (NYSE:T) is scheduled to release its fourth-quarter results before the market opens on January 24. The company might have benefited from increasing wireless subscriptions and the strong adoption of 5G deployments.
Ahead of the Q4 results, Oppenheimer analyst Timothy Horan is bullish on the stock. Horan believes AT&T is well poised to benefit from its improved network capacity and coverage, growth in broadband subscribers and revenue, and cost-cutting initiatives. The analyst upgraded the stock’s rating to Buy from Hold with a price target of $21, which implies a 25% upside potential from the current level.
AT&T’s Q4 Expectations
Interestingly, the company has a consistent history of delivering strong quarterly performances. The company surpassed earnings expectations for 12 consecutive quarters, indicating the potential for it to outperform estimates again in the to-be-reported quarter.
This time, Wall Street expects AT&T to post earnings of $0.56 per share in Q4 compared with $0.61 per share reported in the prior-year period. Meanwhile, revenue is expected to rise marginally from the year-ago quarter to $31.46 billion.
Is AT&T a Buy, Sell, or Hold?
Overall, Wall Street is cautiously optimistic about T stock. AT&T has a Moderate Buy consensus rating based on seven Buys, four Holds, and one Sell. The average price target of $19.55 implies a 16.4% upside potential from current levels. Shares of the company have gained 16.3% over the past six months.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are expecting that T stock will move by +/-6.07% after reporting earnings.
Ending Note
The company’s aggressive cost-cutting measures and expected improvement in margins could support its stock price. In addition to this, AT&T’s focus on boosting its core telecom business has resulted in wireless subscription growth and the expansion of its Fiber segment.
