AT&T Shares Seen as Undervalued by D.A. Davidson, Citing Company's Diversification and Growth Potential
03:25 PM EST, 02/05/2021 (MT Newswires) -- AT&T (T) shares are undervalued, according to analysts at D.A. Davidson, who believe the current price does not adequately reflect the company's assets, streaming opportunities, subscriber base, and stable cash flow.
"After T's acquisition of DirecTV and Time Warner, it became one of the largest diversified media companies in the world with a robust content library and unique distribution of assets that it can utilize to drive growth," wrote the analysts in their note. They added that AT&T's introduction of nationwide 5G service last year should also help it remain competitive.
Davidson analysts also believe the company is still in "the early stages of improving monetization of subscribers, especially in the advertising vertical."
The analysts said that after speaking with AT&T management, they are confident the company can sustain its current dividend. They question, however, how willing the board will be to raise it later this year.
Davidson has the stock rated a buy/add with a price target of $35.
Price: 28.97, Change: +0.08, Percent Change: +0.28