AT&T: Jefferies maintains 'hold' rating

(CercleFinance.com) - Jefferies maintains its "hold" rating on AT&T on Friday, along with a 35-dollar target price for the share.


In a note dedicated to the US carrier's content offering, Jefferies says that as a result of the acquisition of Time Warner, part of the longer term plan is to create a bundled product, including HBO, Turner and Warner Bros. content.

With competitive programming spend continuing to grow, the broker assumes AT&T will increase programming sending in the high single-digit range, although this could prove conservative from its point of view.

As Jefferies increases AT&T's expected programming spend for 2018 and 2019, it is also cutting its respective EPS estimates by 6% and 12%, it said.

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