By Sam Boughedda
Investing.com — Shares of AT&T Inc (NYSE:T) are up just under 2% in early Monday trading, after Barclays upgraded the stock to overweight from equal weight, with an unchanged price target of $30.
Analyst Kannan Venkateshwar told investors they have been talking up AT&T's attractiveness as an investment for some time but refrained from upgrading the stock due to concerns about the expected "drag from the Warner Media deal technicals and uncertainty regarding the competitive environment."
"However, the timeline is getting more aligned with the opportunity due to upcoming catalysts such as proximity to the 2022 guidance cycle across telecom companies and potential decision on Warner Media deal structure, as a result of which we expect more focus on the name in the coming months," the analyst explained.
Venkateshwar also cited the improved positioning of telecom companies in 2022 because wireless trends have "relatively more visibility" compared to cable. He also mentioned Infrastructure Act tailwinds and potential gains from new revenue sources.
Last week, Morgan Stanley upgraded the stock to overweight after its share price fall, which has put it down over 17% for the year to date, taking its valuation to attractive levels.