AT&T price target raised to $22 from $19 at RBC Capital

RBC Capital raised the firm’s price target on AT&T to $22 from $19 and keeps a Sector Perform rating on the shares ahead of its Q3 results . The firm is nudging lower its Q3 EPS view by 1c to 58c to reflect lower equipment revenue and quarterly timing differences of free cash flow within the second half of the year, though its higher price target reflects higher out-year estimates, the analyst tells investors in a research note. Reflecting recent management commentary, RBC also keeps its postpaid phone net addition estimates unchanged at 450K, underpinned by churn at 0.75% – 4bps lower Y/Y with a modest decline in gross additions at 3% – in line with the Q2 trend, the firm added.