Shares were boosted by upgrades from analysts at UBS and Barclays. UBS bumped its rating to buy from neutral and raised its price target to $42 from $34, on the heels of appealing valuations.
"We believe the near-term financial benefits of AT&T's acquisition of DirecTV (DTV) are under-appreciated by the market," the analysts noted. "The company has a strong history of successfully integrating large acquisitions with the benefit accruing directly to shareholders in the 12 months post-close."
Barclays analysts upped their rating to overweight from equal weight and raised the price target to $39 from $34. Barclays expects better earnings from the DirecTV deal.
"Our analysis suggests that despite expectations for ongoing competitive pressure in the U.S. wireless market, the number of levers (i.e. revenue and cost synergies) that could positively impact AT&T's bottom line post the imminent close of the DirecTV transaction are too material to ignore," the analysts wrote.
AT&T agreed to acquire DirecTV in May for $95 per share.
Of the analysts who cover the stock, 34.2% maintain buy ratings, 57.9% have hold ratings while 7.9% maintain sell ratings, according to data compiled by Bloomberg.
Shares of AT&T have returned 7% since the start of the year.
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 and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: T Ratings Report