NEW YORK (TheStreet) -- AT&T (T) jumped Tuesday, after analysts at both UBS and Barclays issued upgrades for the telecommunications giant. Frontier Communications (FTR) edged higher after an analyst at Bank of America said it would not be surprising if the company issued a higher dividend.
AT&T jumped 2.5% to close at $35.91.
The telecommunications giant received an upgrade to buy from neutral from UBS, which also increased its price target for AT&T to $42 a share from $34 a share. For UBS, its action was prompted by the view that AT&T has attractive valuations.
Barclays, citing expectations of AT&T reporting improved earnings after it completes its DirecTV (DTV) acquisition, raised its recommendation for the company to overweight from equal weight, as well as increasing its price target to $39 a share from $34 a share.
Meanwhile, other analysts have also increased their price targets or bumped up their recommendations for AT&T lately, according to a 24/7 Wall St. report. JPMorgan raised its price target to $40 a share from $35 a share, in addition to upgrading the company to overweight from neutral. Jefferies increased its price target for AT&T to $40 a share from $39 a share.
Frontier Communications rose 1.4% to end the session at $5.09.
The small community and rural telephone provider received a lift after Bank of America analyst David Barden said Frontier may show promise for issuing a higher dividend, according to a report in Benzinga.
In citing a catalyst for a potential increased dividend, Barden pointed to Frontier's plans to purchase some of Verizon Communication's (VZ) assets. When Frontier purchased some of AT&T's assets, it increased its annual dividend 5% last year, according to Benzinga.