Oppenheimer Upgrades AT&T Inc. (T), Here’s Why

AT&T Inc. (NYSE:T) is one of the best cheap stocks to buy for beginners. Oppenheimer upgraded AT&T Inc. (NYSE:T) to Perform from Outperform on June 3, saying that the firm believes longer-term broadband subscriber growth and, eventually, mobile is at risk from the growing threat of satellite LEO constellations. It added that while AT&T Inc. (NYSE:T) has the most broadband exposure relative to telco peers, it is less exposed than the cable service providers. Oppenheimer also stated that it is set to build 7M new fiber passings this year, as well as 5M annually thereafter to get to 60M-plus total locations by 2030. According to the firm, the penetration will disappoint, and AT&T Inc. (NYSE:T) may stop at 50M homes.

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In a separate development, In a separate development, AT&T Inc. (NYSE:T) announced on May 14 a joint agreement with T-Mobile and Verizon to form a new JV aimed at helping end wireless dead zones in the United States, which includes rural areas. The JV plans to do so by pooling limited spectrum resources to raise capacity, enhance customer experience, and help satellite providers to reach more customers through a unified platform. Management reported that the JV remains subject to negotiations between the parties to reach definitive agreements, as well as to satisfying customary closing conditions.

AT&T Inc. (NYSE:T) provides telecommunications and technology services and operates through the Communications and Latin America segments. Its Communications segment offers wireline telecom, wireless, and broadband services in the US and globally, while the Latin America segment manages services in Mexico.

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