CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $3 to $16, 6.4x our ’24 EPS estimate, a discount to its three-year forward average P/E at 8.0x, reflecting its highly leveraged balance sheet. We increase our ’23 EPS estimate by $0.02 to $2.43 and raise ’24’s by $0.04 to $2.49. T reported Q3 operating EPS of $0.64 vs $0.68, $0.02 above the consensus. Q3 revenue rose 1.0%, with 2.0% growth in mobility, driven by 3.7% service growth and 4.6% growth in consumer wireline, partially offset by a 7.9% drop in business wireline. Postpaid phone net adds were 468k, prepaid adds came in at 26k, and fiber net adds were 296k. Given the solid Q3 results, coupled with what we saw in Q2, we believe the ship is slowly beginning to turn. While debt is still a concern, management is confident it will reduce leverage to 2.5x by the first half of ’25. On the 5G side, it expects to reach 200M people with mid-band by the end of the year, ahead of VZ but well behind TMUS.