In a market that’s not being kind to the telecom stocks, the director of investments at Captrust says AT&T Inc (NYSE: T) at its year-to-date high is a great buy.
Ledoux’s reasons to own AT&T Inc
The American multinational spun off WarnerMedia in April, which, as per Christian Ledoux, makes the core AT&T business quite attractive for investors. On CNBC’s “The Exchange”, he said:
AT&T is the one you want to buy during a volatile period like this. A very stable business; telecommunication services. AT&T made a horrible acquisition back in 2016. But they have finally unwound WarnerMedia.
Apparently, Wall Street agrees with Ledoux as well considering the consensus rating on the stock is “overweight” with an average price target of $22.73 a share or about 10% upside from here.
Why else does he like AT&T stock?
Last month, AT&T blamed the aftermath of its divested satellite TV unit as it reported a 13% year-over-year decline in its Q1 overall revenue. Speaking with CNBC’s Kelly Evans, the Captrust expert noted:
We’re now seeing signs from management that they’ve been sufficiently chastised and are willing to stock to the core business, cut costs, and raise prices. These show incremental positives for a stock that’s had a pretty bad five-year period.
Earlier this week, AT&T struck a deal with Dish Network that enables the latter to resell its fiber and other internet offerings. The stock that trades at a PE multiple of 8.61 is up more than 5.0% for the year.
The post Captrust: buy AT&T ‘during a volatile period like this’ appeared first on Invezz.
