Shares of AT&T (T) wrapped up Tuesday’s trading day to the upside, by 2.7 percent. The stock is TheStreet’s Move of the Day. Shares were boosted after the analysts at UBS and Barclays upgraded the stock. UBS bumped its rating to BUY from NEUTRAL and raised its price target to $42 from $34, on the heels of appealing valuations. ‘We believe the near-term financial benefits of AT&T’s acquisition of DIRECTV are under appreciated by the market,’ the analysts noted. ‘The company has a strong history of successfully integrating large acquisitions with the benefit accruing directly to shareholders in the 12 months post-close.’ As for Barclays, the analysts upped its rating to OVERWEIGHT from EQUAL WEIGHT and raised its price target to $39 from $34. It expects better earnings thanks from the pending DIRECTV (DTV) deal. ‘Our analysis suggests that despite expectations for ongoing competitive pressure in the U.S. wireless market, the number of levers (i.e. revenue and cost synergies) that could positively impact AT&T’s bottom line post the imminent close of the DIRECTV transaction are too material to ignore,’ the analysts wrote. AT&T agreed to acquire DIRECTV in May 2014 for $95 per share. Of the analysts who cover the stock, 34.2 percent maintain BUY ratings, 57.9 percent have HOLD ratings, while 7.9 percent maintain SELL ratings, according to data compiled by Bloomberg. Shares of AT&T have returned 7 percent since the start of the year. TheStreet’s Scott Gamm reports from New York.
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