5 big analyst picks: Clouds clearing for Verizon and AT&T, says Citi
Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at 3M, Oracle, Mister Car Wash , AT&T, and Futu.
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Citi analysts see an improved investment outlook for large-cap telecoms, and specifically upgraded both Verizon (NYSE:VZ) and AT&T to Buy, with $40 and $17 price targets, respectively.
«We see a few factors that point towards a stabilizing wireless competitive landscape,» say the analysts, adding, «AT&T and Verizon have recently introduced another round of targeted back book pricing increases. Also, longer device holding periods are reducing upgrade costs & stabilizing churn.»
The analysts say that the stocks' current valuations «may be discounting more than full-remediation cost scenarios for lead, while anticipated updates could help to level and possibly narrow the perceived risk,» referring to recent controversy borne of a Wall Street Journal report that the companies are using contaminating lead-covered cables, which could lead to high remediation costs.
Verizon shares were gaining 1.4% to $34.02 in recent premarket trading. AT&T was adding 1.6% to $14.43.
Wolfe Research upgraded 3M (NYSE:MMM) to Peerperform from Underperform, as reported in real-time on InvestingPro.
Shares surged more than 5% yesterday following media reports that the industrial conglomerate has agreed to pay over $5.5B to resolve hundreds of thousands of lawsuits alleging that its earplugs sold to the U.S. military were defective.
According to the reports, sources close to the matter say that the negotiations are ongoing and a final amount has yet to be decided. The potential settlement was first reported by
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