Despite iPhone Launch, Upgrade Cycle Not Expected to Boost Telecoms

  • Citi analyst Michael Rollins increased his price target for AT&T stock to $24, implying an 11% increase from the closing price of $21.71 on Tuesday.
  • AT&T stock has risen 27% this year and trades at 9.6 times 12-month forward earnings.
  • Rollins believes the recent improvement in Telco stock valuations is due to improving sentiment on the fundamental environment and encouraging commentary from carriers about wireless competition.
  • AT&T posted stronger-than-expected net phone subscriber numbers for Q2, but Rollins doesn’t expect a device upgrade super cycle following the iPhone 16 launch.

Citi analyst Michael Rollins increased his price target for AT&T stock to $24, implying an 11% increase from the closing price of $21.71 on Tuesday. The recent improvement in Telco stock valuations is attributed to improving sentiment on the fundamental environment and encouraging commentary from carriers about wireless competition. AT&T’s net phone subscriber numbers for Q2 were stronger than expected, but Rollins doesn’t expect a device upgrade super cycle following the iPhone 16 launch. The stock has risen 27% this year and trades at 9.6 times 12-month forward earnings.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about AT&T stock performance, analyst’s opinion on its growth potential, and the impact of iPhone 16 launch. It also includes relevant details about the company’s subscriber numbers and industry trends. However, it contains some speculation about future events (device upgrade super cycle) which may not be universally accepted truth.
Noise Level: 4
Noise Justification: The article provides relevant information about AT&T stock and its potential growth based on analyst’s opinion and recent events in the telecommunications industry. However, it also includes some speculative statements about Apple’s iPhone 16 and its impact on upgrade cycles which may not be entirely accurate or relevant to the main topic.
Public Companies: AT&T (T), Apple (AAPL)
Key People: Michael Rollins (Analyst at Citi), Sam McHugh (Head of Telecom Equity Research at BNP Paribas), Angela Palumbo (Writer)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: AT&T stock and telecommunications industry
Financial Rating Justification: The article discusses AT&T’s stock performance, its price target increase, impact of iPhone 16 launch on the company, and its effect on the telecommunications industry. It also mentions the overall financial market movement with S&P 500.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
Move Size: The market move size mentioned in this article is an 11% increase from AT&T’s closing price of $21.71 on Tuesday, which is equivalent to a $24 price target set by Citi analyst Michael Rollins.
Sector: Technology
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks

Reported publicly: www.barrons.com