Will AT&T's Latest Strategies Impress the Market? Analyst Weighs In On Potential Impact And New Ericsson Deal
Portfolio Pulse from Anusuya Lahiri
Oppenheimer analyst Timothy Horan maintains a Perform rating on AT&T Inc (NYSE:T), following a conference where AT&T's CFO Pascal Desroches discussed the company's strategies and new deal with Ericsson (NASDAQ:ERIC). Desroches highlighted AT&T's shift to a bundled connectivity provider, Open RAN efforts with Ericsson, and a reduction in capital expenditure to $21-22 billion next year. AT&T expects to improve free cash flow and sees fiber as a key growth driver, aiming to leverage government subsidies for expansion. The company anticipates 500K phone net adds in Q4 and targets a leverage ratio of 2.5x by 1H25, after which it may adjust its capital allocation strategy. AT&T's shares dropped by 1.18% to $16.42.
December 12, 2023 | 6:33 pm
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POSITIVE IMPACT
Ericsson's new agreement with AT&T to accelerate Open RAN efforts may boost its position in the market, but there was no immediate stock price reaction mentioned.
The partnership with AT&T could be seen as a positive development for Ericsson, potentially leading to increased business and market share. However, without specific stock price reaction data, the impact is considered cautiously optimistic.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
AT&T's upbeat conference presentation and strategic initiatives, including the Ericsson deal and fiber expansion, may reassure investors, but the stock experienced a slight decline of 1.18% to $16.42.
While the strategic updates and Ericsson deal indicate positive long-term prospects, the immediate market reaction was slightly negative. The Perform rating suggests a neutral outlook, and the stock price movement reflects short-term investor sentiment.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90