U-verse Impact on AT&T Minimal

The Trefis price estimate of around $38 for AT&T's stock is 41% above the current market price of around $27.
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AT&T (T) - Get Report offers fiber-optic based Internet & TV network service under the brand U-verse. It competes with Verizon (VZ) - Get Report, Dish Network (DISH) - Get Report, Comcast (CMCSA) - Get Report, Time Warner Cable (TWC) and DirecTV (DTV) in the pay TV market. We currently have a Trefis price estimate of around $38 for AT&T's stock, about 41% above the current market price of around $27.

Trefis members have created forecasts for two key drivers of AT&T's stock over the last week: (1) U-verse TV Pricing and (2) U-verse TV Subscribers. The Trefis members' forecasts imply very little impact to Trefis price estimate for AT&T's stock.

AT&T's stock is quite sensitive to (1) U-verse TV Pricing and (2) U-verse TV Subscribers. Below are charts showing recent estimates created by Trefis members for the two drivers in detail.

1. U-verse TV Pricing

The average of forecasts for U-verse TV Pricing created by Trefis members indicated a projected increase from $60.50 per month in 2010 to $64.10 per month by the end of the Trefis forecast period, compared to the baseline Trefis estimate of an increase from $60.20 per month in 2010 to $62.60 per month by the end of the Trefis forecast period. The member estimates imply little upside to the Trefis price estimate for AT&T's stock. In the past, U-verse TV Pricing has increased from $59 per month in 2006 to $60.20 per month in 2009.

You can drag the forecast trendline above to express your own view, and see the sensitivity of AT&T's stock to U-verse TV Pricing.

Our

complete analysis for U-verse TV Pricing is here.

2. U-verse TV Subscribers

The average of forecasts for U-verse TV Subscribers created by Trefis members indicated a projected increase from 2.7 million in 2010 to 8.4 million by the end of the Trefis forecast period, compared to the baseline Trefis estimate of an increase from 3 million in 2010 to 9.2 million by the end of the Trefis forecast period. The member estimates imply a downside of 1% to the Trefis price estimate for AT&T's stock. In the past, U-verse TV Subscribers has increased from 0.2 million in 2007 to 2.1 million in 2009.

You can drag the forecast trendline above to express your own view, and see the sensitivity of AT&T's stock to U-verse TV Subscribers.

Our

complete analysis for AT&T's stock is here.

Trefis

is a financial community structured around trends, forecasts and insights related to some of the most popular stocks in the U.S.