Bank of America Merrill Lynch Maintains Neutral on AT&T

Bank of America Merrill Lynch is out with its report today on AT&T T, maintaining Neutral. In a note to clients, Bank of America Merrill Lynch writes, "AT&T is fundamentally sound with a stable subscription-based business model. However, potential for negative estimate revisions and valuation at the high end of the historical range support our Neutral rating. M&A and wireless margin expansion have driven premium earnings growth and fueled the story, but they are running out of steam at a critical juncture. We expect rising wireless substitution to drive accelerating line loss on the wireline side while wireless margins remain under pressure." Bank of America Merrill Lynch maintains a $30 PO on T. Shares of T closed Tuesday at $30.33, up 0.70% from Monday's close.