Benzinga | Dec 20, 2021 07:48AM EST

Barclays Upgrades AT&T To Overweight; Sees 26% Upside

Barclays analyst Kannan Venkateshwar upgraded AT&T Inc (NYSE:T) from Equal-Weight to Overweight and a $30 price target. The price target implies an upside of 26.2%.

* Venkateshwar cited valuation and Warner deal benefits behind the re-rating.

* Related Content: Why The Discovery-AT&T Deal Poses A Credible Threat In Streaming Wars

* Wireless is AT&T's most prominent business, contributing about 40% of revenue.

* AT&T is the third-largest U.S. wireless carrier, connecting 66 million postpaid and 17 million prepaid phone customers.

* WarnerMedia contributes ~20% of revenue with media assets that include HBO, the Turner cable networks, and the Warner Brothers studios.

* AT&T to spin Warner off and merge it with Discovery Inc (NASDAQ:DISCA) to create a new stand-alone media firm. The company recently stated regulatory review process is proceeding as expected regarding the pending WarnerMedia-Discovery transaction.

* Price Action: T shares traded higher by 1.60% at $24.16 in the premarket session on the last check Monday.