NEW YORK (TheStreet) -- Shares of AT&T Inc. (T) are up 0.11% to $34.95 after the company provided 2015 capital expenditure guidance that was approximately 13.5% below consensus expectations, according to Credit Suisse analysts.
Additional growth due to better free cash flow could boost the telecommunications company in 2015, analysts said.
"Lower CapEx suggests better 2015 free cash flow. AT&T expects 2015 CapEx to be in the $18B range. This compares to our estimate of $20.5B, implying a potential boost to FCF of up to $2.5B," the firm said.
"Our 2015 FCF forecast is $11.1B. Free cash flow of $13B would imply year-over-year growth of nearly 20% and a dividend payout ratio of 77%, excluding pending acquisitions," Credit Suisse added.
Additionally, AT&T announced on Friday that it would acquire lusacell, Mexico's third largest wireless telecom company, for $2.5 billion.
Separately, TheStreet Ratings team rates AT&T INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."