AT&T Inc (NYSE:T) last week was in the news for the wrong reasons, as hackers gained unauthorized access to its data systems.
There is 5%-6% upside to the Street's EBITDA estimates for the company and improving growth could drive "double-digit annualized returns for the stock," according to Goldman Sachs.
Analyst James Schneider maintained a Buy rating and price target of $25.
The AT&T Thesis: Both competitive intensity and capital intensity have moderated in the U.S. wireless industry, and this trend is expected to be sustainable, Schneider said in the note.
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"AT&T is the most aggressive builder of fiber in the United States today, which should drive accelerating broadband revenue growth while stemming legacy losses," the analyst wrote. The company is cross-selling fiber and wireless to generate "strong returns on a per-customer basis," he added.
As the company executes on its copper decommissioning plan, Wireline margins could expand, despite a decline in legacy revenues, Schneider stated. "We believe AT&T could generate $4.5 bn in cost savings," he further wrote.
T Price Action: Shares of AT&T had risen by 1.561% to $23.04 at the time of publication on Monday.
Read More:
- T-Mobile Hit By Chinese Hackers After Rivals AT&T, Verizon Suffer Breach: Report
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