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Analyst Touts AT&T As Top Telecom Pick Backed By Wireless Subscriber, Fiber-To-The-home, Fixed Wireless Growth Momentum

Benzinga Real-time News ·  Jan 10, 2023 12:42
  • Wells Fargo analyst Eric Luebchow upgraded AT&T Inc (NYSE:T) from Equal-Weight to Overweight and raised the price target from $17 to $22.
  • The analyst viewed the telecom sector as a relatively defensive play going into 2023, despite some growth challenges ahead.
  • Wireless subscriber growth should remain elevated vs. historical levels but appears likely to slow in 2023 on a year-on-year basis.
  • Fiber-to-the-home construction should grow >20% despite pressure from rising costs of capital and cost inflation.
  • Fixed wireless should continue to take share, although the pace of growth will likely moderate.
  • But given the current inflationary backdrop, the analyst thinks investors need to be selective.
  • Luebchow's top ideas for 2023 across telcos include AT&T, Frontier Communications Parent, Inc (NASDAQ: FYBR), and T-Mobile US, Inc (NASDAQ: TMUS).
  • Price Action: T shares traded higher by 1.76% at $19.38 on the last check Tuesday.
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