Stock Markets
Deutsche Bank bumps AT&T shares target, impacted by Apple’s AI integration
On Friday, a Deutsche Bank analyst updated the financial model for AT&T (NYSE:T), leading to an increased price target for its shares. The new target is set at $26.00, up from the previous $24.00, while the firm continues to recommend a Buy rating for the stock.
The revision reflects minor adjustments to second-quarter and second-half 2024 forecasts, with an expectation of higher customer upgrade rates and industry switching activity. This anticipated change is attributed to the integration of generative AI into Apple (NASDAQ:)’s iOS18, slated for release in the fall of 2024. Additionally, the analyst has revised Free Cash Flow (FCF) estimates upwards after a more detailed analysis.
AT&T is regarded by Deutsche Bank as a leading choice within the Cable and Telecom sector due to its strategic position for fixed-mobile convergence. The company is also recognized for its robust wireless and home broadband industry dynamics, a positive growth outlook for its fiber broadband business, and the potential for further margin improvement as it decommissions networks.
Consistent operational execution and the possibility of increased wireless market share contribute to the favorable view. Furthermore, the analyst anticipates AT&T to resume share repurchases in the second half of 2025 following a period focused on debt reduction.
The report also suggests that the consensus FCF estimates for the years beyond 2025 might be undervaluing the company’s potential. The valuation of AT&T is deemed very attractive, with an estimated 8.5% unlevered free cash flow yield for 2024 and a multiple of 6.1 times the projected 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA).
In other recent news, AT&T Inc. has declared quarterly dividends for both its common shares and two series of preferred stock. The declared dividend for the common shares is $0.27 per share, with shareholders of Series A and C preferred stocks set to receive $0.3125 and $0.296875 per depositary share, respectively.
The company’s CEO, John Stankey, has proposed that Big Tech companies contribute to the Universal Service Fund, a government initiative subsidizing telecom and broadband services. This proposal could lead to a new funding model for the program. In a separate development, AT&T is involved in a legal challenge against the reinstatement of net neutrality rules by the Biden administration.
Lastly, significant stock trading activity has been noted by Congressman Mike Kelly and Congress member Carol Devine Miller, who both recently sold their shares in AT&T.
InvestingPro Insights
As AT&T (NYSE:T) garners attention with an updated price target from Deutsche Bank, insights from InvestingPro further illuminate the company’s financial health and market position. With a market cap of $136.38 billion and a dividend yield of 5.92% as of mid-2024, AT&T stands out as a significant player offering substantial returns to shareholders. This aligns with the Deutsche Bank’s perspective on the company’s attractive valuation and robust industry dynamics.
An InvestingPro Tip indicates that AT&T has a perfect Piotroski Score of 9, suggesting strong financial health and operational efficiency. This is particularly relevant considering the company’s strategic initiatives and potential market share increase mentioned by Deutsche Bank analysts. Additionally, the company’s price to earnings (P/E) ratio stands at 12.87, reflecting a market sentiment that may factor in the anticipated growth and integration of generative AI into products affecting telecoms.
Investors interested in a deeper analysis can find additional InvestingPro Tips for AT&T, which further dissect the company’s market performance and financial stability. With a total of 12 additional tips available, including insights on shareholder yield and valuation implications, InvestingPro offers a comprehensive toolkit for those looking to make informed investment decisions. To access these tips and more detailed metrics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Stock Markets
Trump transition team plans immediate WHO withdrawal, expert says
By Maggie Fick and Ahmed Aboulenein
WASHINGTON (Reuters) – Members of Donald Trump’s presidential transition team are laying the groundwork for the United States to withdraw from the World Health Organization on the first day of his second term, according to a health law expert familiar with the discussions.
“I have it on good authority that he plans to withdraw, probably on Day One or very early in his administration,” said Lawrence Gostin, professor of global health at Georgetown University in Washington and director of the WHO Collaborating Center on National and Global Health (NS:) Law.
The Financial Times was first to report on the plans, citing two experts. The second expert, former White House COVID-19 response coordinator Ashish Jha, was not immediately available for comment.
The Trump transition team did not immediately respond to a Reuters request for comment.
The plan, which aligns with Trump’s longstanding criticism of the U.N. health agency, would mark a dramatic shift in U.S. global health policy and further isolate Washington from international efforts to battle pandemics.
Trump has nominated several critics of the organization to top public health positions, including Robert F. Kennedy Jr., a vaccine skeptic who is up for the post of secretary of Health and Human Services, which oversees all major U.S. health agencies including the CDC and FDA.
Trump initiated the year-long withdrawal process from the WHO in 2020 but six months later his successor, President Joe Biden, reversed the decision.
Trump has argued that the agency failed to hold China accountable for the early spread of COVID-19. He has repeatedly called the WHO a puppet of Beijing and vowed to redirect U.S. contributions to domestic health initiatives.
A WHO spokesperson declined to directly comment but referred Reuters to comments by WHO Director-General Tedros Adhanom Ghebreyesus at a press briefing on Dec. 10 in which he was asked whether he was concerned that the Trump administration would withdraw from the organization.
Tedros said at the time that the WHO needed to give the U.S. time and space for the transition. He also voiced confidence that states could finalize a pandemic agreement by May 2025.
Critics warn that a U.S. withdrawal could undermine global disease surveillance and emergency response systems.
“The U.S. would lose influence and clout in global health and China would fill the vacuum. I can’t imagine a world without a robust WHO. But U.S. withdrawal would severely weaken the agency,” Gostin said.
Stock Markets
Just in: MicroStrategy Buys $561 Million More Bitcoin (BTC), Announces Saylor
U.Today – MicroStrategy has made headlines again by purchasing 5,262 BTC for approximately $561 million at an average price of $106,662 per BTC. The company now holds a staggering 444,262 BTC, accumulated at a total cost of approximately $27.7 billion, with an average purchase price of $62,257 per BTC.
Despite impressive returns of 47.4% since the beginning of the quarter and 73.7% since the beginning of the year, skepticism about the company’s strategy is growing.
It is believed that to sustain its purchases, MicroStrategy raises capital through methods such as issuing convertible and corporate bonds, securing credit lines and selling shares.
This cycle appears to operate as follows: shares are sold to acquire the cryptocurrency, and the rising price per BTC increases asset value, enabling further loans, which are then reinvested in more purchases.
Some observers warn that a significant decline in Bitcoin’s price or MicroStrategy’s stock could trigger a cascade effect. A sharp fall in MSTR shares would weaken the collateral backing its loans, potentially leading to forced asset sales, including BTC.
This scenario could exert downward pressure on the broader cryptocurrency market, as the company holds 2.2% of the global Bitcoin supply now.
Thus, while some view Michael Saylor’s approach as a bold bid to cement the cryptocurrency’s role in the financial system, others see it as unsustainable. History offers a cautionary note: in 2000, MSTR shares surged to $333 before plummeting 99%, a collapse that took 24 years to recover from.
Stock Markets
Taylor Morrison Named Among America’s Most Trusted and Best Companies by Forbes
National homebuilder ranked No. 12 on inaugural list ranking companies based on trust
SCOTTSDALE, Ariz., Dec. 23, 2024 /PRNewswire/ — With a longstanding reputation for trust, national homebuilder and land developer Taylor Morrison (NYSE:) (NYSE: ™HC) has been recognized by Forbes on their inaugural list of the Most Trusted Companies in America. The homebuilder ranked No. 12 out of 300 companies across all industries.
“There are few things more powerful than trust and it’s something we strive to earn amongst all company stakeholders, from our customers to our team members, our shareholders, and our local communities,” said Taylor Morrison Chairman and CEO Sheryl Palmer. “To be included on this esteemed list in its inaugural year is especially meaningful and these awards are important reminders of the relationships we’re building across all aspects of our business.”
Fueled by hundreds of millions of data points, the Most Trusted Companies in America list combines data on a wide range of factors across four categories: employee trust, customer trust, investor trust and media sentiment. The ranking was created in partnership with research companies HundredX, Signal AI and Glassdoor.
Taylor Morrison also earned the No. 67 spot on Forbes’ inaugural America’s Best Companies list. The ranking is Forbes’ most comprehensive company ranking to date and factored in ratings for financial performance, customer and employee satisfaction, cybersecurity, sustainability, companies’ remote work policies, media coverage and more. Forbes’ America’s Best Companies list assessed more than 60 metrics across 11 primary categories to identify which organizations excel across the board. Of the more than 2,000 U.S.-based publicly traded companies that were eligible, only 300 qualified for each list.
In addition to being named among the Most Trusted and Best Companies in America by Forbes, Taylor Morrison holds several additional accolades including being named on Newsweek’s America’s Most Responsible Companies and America’s Greenest Companies lists, U.S. News & World Report’s Best Companies to Work For list, the American Opportunity (SO:) Index, America’s Most Trusted ® Home Builder for nine years, Hearthstone’s 2021 BUILDER Humanitarian Award, and inclusion on the Fortune 500 list since 2021.
About Taylor Morrison
Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the nation’s leading homebuilders and developers. We serve a wide array of consumers from coast to coast, including first-time, move-up, luxury and resort lifestyle homebuyers and renters under our family of brands”including Taylor Morrison, Esplanade and Yardly. From 2016-2024, Taylor Morrison has been recognized as America’s Most Trusted ® Builder by Lifestory Research. Our long-standing commitment to sustainable operations is highlighted in our annual Sustainability and Belonging Report.
For more information about Taylor Morrison, please visit www.taylormorrison.com.
CONTACT:
media@taylormorrison.com
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