Raymond James Considers AT&T (T) a Top Large-Cap Total Return Opportunity

AT&T Inc. (NYSE:T) is one of the best value stocks in Goldman Sachs’ portfolio. On September 18, Frank Louthan, an analyst at Raymond James, raised the price target on the stock from $31 to $33 and maintained his Buy rating.

The analyst cited three metrics that are particularly tracked for telecommunication companies. These three metrics are Wireless post-paid subscriber growth, EPS, and free cash flow growth. According to his analysis, AT&T is executing its strategy effectively and should be able to perform well on these metrics. For the next 12 months, Louthan also called AT&T its top large-cap total return opportunity.

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Telecom stocks are generally supported by stable wireless demand, disciplined capital allocation, and consistent cash generation that underpins dividends and debt reduction. A couple of days before Louthan, JPMorgan analyst Sebastiano Petti had commended AT&T’s capital return strategy, including $20 billion in share repurchases till 2027, as one of the factors to support his Buy rating. Petti also believes that the company will gain share in the convergence market with the help of its recent acquisitions of Lumen’s consumer fiber business and spectrum from EchoStar.

AT&T Inc. (NYSE:T) is a major U.S. telecommunications and media company offering wireless, broadband, and fiber services to millions of customers.

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Disclosure: None. This article is originally published at Insider Monkey.