AT&T "outperform," target price raised

01/12/07 - Credit Suisse

NEW YORK, January 12 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on AT&T Inc (T), while raising their estimates for the company. The target price has been raised from $38 to $39.

In a research note published yesterday, the analysts mention that the wireless net subscriber add estimate for 2007 has been raised from 3.2 million to 6 million, to reflect Cingular's potential to continue to gain market share in 2007. The potential synergies from BellSouth's full integration with Cingular have been incorporated into AT&T's earnings model, the analysts say. The EPS estimate for 2007 has been raised from $2.50 to $2.54.