Why BofA Analyst is Bullish About AT&T Stock After Earnings Report

AT&T Inc. T reported its first-quarter revenues and earnings ahead of expectations. The focus of the results was on wireless subscriber growth, given the company’s better-than-expected net additions in the quarter, according to BofA Securities.

The AT&T Analyst: David Barden maintained a Buy rating for AT&T, with the price target unchanged at $36.

The AT&T Thesis: The current share price reflects “only negative storylines,” Barden said in the note.

AT&T reported its first-quarter earnings at 86 cents per share, ahead of the Street estimate of 78 cents a share. Consolidated revenue came in at $43.9 billion, surpassing the consensus of $42.7 billion. Adjusted EBITDA was also better than expected, the analyst mentioned.

“Heading into results, we believe the focus was on wireless subscriber growth after a strong 4Q20, and HBO Max subscriber growth ahead of its June 2021 international launch,” he added.

“Post-paid net additions of +823k beat our +119k and consensus of +282k while key post-paid phone net adds of +595k also beat consensus of +248k and our +251k … Prepaid net adds of +279k beat our -58k estimate and compares to the Street at +48k,” Barden wrote.

T Price Action: Shares of AT&T had risen by 3.79% to $31.25 at the time of publication Thursday.

AT