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AT&T (NYSE:T) was upgraded by equities research analysts at Morgan Stanley from a “market perform” rating to a “buy” rating in a research note issued to investors on Monday. The firm currently has a $41.00 price objective on the stock. Morgan Stanley’s price target points to a potential upside of 11.59% from the company’s current price.

The analysts wrote, “definitive agreement” where AT&T will acquire DIRECTV in a stock and cash transaction for $95.00, based on AT&T’s Friday closing price. The $95.00 price represents a 70/30 equity cash split of $66.50 per share in AT&T equity and $28.50 per share in cash. The deal is expected to close within a year subject to DOJ, FCC and shareholder approval. Raymond James remarked that shares will likely trade at a discount due to the approximate 12-month time frame and the potential regulatory overhang. Louthan wrote, “We believe the broadband carrot Washington is so enamored with will get it over the line, given that AT&T has agreed to build high-speed internet to an additional 15 million homes as part of the transaction, will continue to offer DirecTV on a standalone basis for at least three years, and will offer a minimum 6 mbps standalone broadband offering where it has it today (which we can demonstrate is a perfectly acceptable throughput for OTT). There will still be three traditional video providers (DISH + Cable) in almost all overlapping markets, plus nascent OTT options further improving the odds of a favorable ruling.”

AT&T (NYSE:T) traded down 1.12% on Monday, hitting $36.33. 42,450,488 shares of the company’s stock traded hands. AT&T has a one year low of $31.74 and a one year high of $37.44. The stock has a 50-day moving average of $35.62 and a 200-day moving average of $34.40. The company has a market cap of $188.6 billion and a P/E ratio of 10.71. AT&T also was the target of a large decrease in short interest during the month of April. As of April 30th, there was short interest totalling 185,900,383 shares, a decrease of 5.7% from the April 15th total of 197,159,869 shares. Currently, 3.6% of the shares of the stock are sold short. Based on an average daily volume of 29,145,466 shares, the short-interest ratio is presently 6.4 days.

AT&T (NYSE:T) last issued its quarterly earnings data on Tuesday, April 22nd. The company reported $0.71 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.69 by $0.02. The company had revenue of $32.50 billion for the quarter, compared to the consensus estimate of $32.36 million. During the same quarter in the prior year, the company posted $0.64 earnings per share. The company’s quarterly revenue was up 3.6% on a year-over-year basis. On average, analysts predict that AT&T will post $2.70 earnings per share for the current fiscal year.

T has been the subject of a number of other recent research reports. Analysts at ING raised their price target on shares of AT&T to $39.00 in a research note on Monday. Separately, analysts at Hudson Square Research raised their price target on shares of AT&T from $37.00 to $39.00 in a research note on Monday. They now have a “hold” rating on the stock. Finally, analysts at Credit Suisse reiterated an “outperform” rating on shares of AT&T in a research note on Monday. They now have a $41.00 price target on the stock, up previously from $39.00. Twelve investment analysts have rated the stock with a hold rating and eight have assigned a buy rating to the stock. AT&T currently has an average rating of “Hold” and an average price target of $36.81.

AT&T Inc (NYSE:T), is a holding company.

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