AT&T upgraded to Buy at Argus on ‘strong case’ for shareholder returns

As previously reported, Argus upgraded AT&T to Buy from Hold with a $27 price target The company’s management has presented a strong case for shareholder returns, earnings and cash flow growth at a recent Analyst Day event as the company finishes extricating itself from some troublesome acquisitions and focuses on the convergence of wireless and fiber internet services, the analyst tells investors in a research note. While the effect of cost savings, network modernization, and revenue acceleration are likely to appear slowly over time, AT&T management’s vision of the opportunities from wireless/fiber convergence, combined with its investments, provide a compelling vision for growth and shareholder returns, the firm added.