Shares of AT&T (T 1.02%) were gaining for the second day in a row today as a flurry of positive analyst notes gave the stock another boost. As of 1:37 p.m. ET, the stock was up 1.5% after gaining as much as 4.3% earlier in the session.
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AT&T finally gets a round of applause from Wall Street
Yesterday, AT&T stock popped after the telecom giant edged out analyst estimates in its third quarter and raised its free-cash-flow guidance for the year from at least $16 billion to $16.5 billion.
Today, AT&T got another boost from analyst chatter as Wall Street viewed the update favorably.
Scotiabank upgraded its rating on AT&T from sector perform to outperform. The analyst noted improving operating earnings, modest capital expenditures, and lower working capital supporting the business and said the dividend was "hard to dismiss." The bank maintained a price target of $18.50 on AT&T, which implies a 20% gain from yesterday's closing price.
TD Cowen, meanwhile, lowered its price target on AT&T from $23 to $20, adjusting for the stock's recent pullback, but complimented the quarter, saying the overall results were good. It maintained a market perform rating on AT&T.
Is AT&T stock a buy now?
Dividend investors have been eyeing AT&T stock for years, it seems, yet the telecom giant has been nothing more than a disappointment, with the stock touching a 30-year-low earlier this year. However, the business does seem to be improving fundamentally, and key metrics, like churn, average revenue per user, and subscriber growth, are moving in the right direction.
The stock is cheap, and the dividend yield is above 7%. After the latest report, it does seem like AT&T shares have finally bottomed out.
