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.
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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.
