NEW YORK (TheStreet) -- AT&T (T) - Get Report jumped Tuesday, after analysts at both UBS and Barclays issued upgrades for the telecommunications giant. Frontier Communications (FTR) - Get Report 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) - Get Report assets. When Frontier purchased some of AT&T's assets, it increased its annual dividend 5% last year, according to Benzinga.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.