AT&T initiated with an Outperform at Bernstein

Bernstein analyst Laurent Yoon initiated coverage of AT&T with an Outperform rating and $28 price target The analyst notes that after a decade of diverging into non-core areas, AT&T is finally back in the game of rates and volume, and thanks to consistent investments in fiber over the past decade, the company is well-positioned to not only continue to gain broadband market share with attractive economics but also to strengthen its wireless offerings through bundled services. Bernstein believes that AT&T’s mobility services revenue will grow at greater than 3% in the foreseeable future, aligned with industry growth, driven by a mix of pricing and line growth, and in the medium term, the firm sees EBITDA margins expanding more rapidly than top-line growth, supported by fiber penetration.