AT&T shares rebound on Wednesday, Morgan Stanley resumes coverage of the stock with “Overweight” rating

June 28, 2018 6:46 am

Shares of AT&T Inc (T) were gaining over 1% at one point during yesterday’s trading session, after Morgan Stanley resumed coverage of the company’s stock with an “Overweight” rating, while analyst Simon Flannery noted that uncertainty about potential development of the company’s various initiatives had already been priced in.

AT&T shares closed higher for the sixth time in the past ten trading sessions in New York on Wednesday. The stock inched up 0.09% ($0.03) to $31.65, after touching an intraday high at $32.05, or a price level not seen since June 21st ($32.30).

Shares of AT&T Inc have retreated 18.60% so far in 2018 compared with a 0.97% gain for the underlying index, S&P 500 (SPX).

In 2017, AT&T Inc’s stock fell 8.58%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

“We retain some of our longer term concerns around the sector and stock, but believe that over the next 12 months, the path of least resistance for AT&T’s stock is to trade higher,” Morgan Stanley’s Flannery wrote in a client note, cited by MarketWatch.

The analyst also noted it was essential to see if AT&T would manage to reduce leverage and realize synergies from the $85-billion acquisition of Time Warner Inc.

Morgan Stanley has set a price target of $37 on the stock.

According to CNN Money, the 24 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $37.50, with a high estimate of $43.00 and a low estimate of $24.00. The median estimate represents an 18.48% upside compared to the closing price of $31.65 on June 27th.

The same media also reported that 16 out of 29 surveyed investment analysts had rated AT&T Inc’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the AT&T stock are presented as follows:

R1 – $31.69
R2 – $31.72
R3 (Range Resistance – Sell) – $31.76
R4 (Long Breakout) – $31.87
R5 (Breakout Target 1) – $32.00
R6 (Breakout Target 2) – $32.05

S1 – $31.61
S2 – $31.58
S3 (Range Support – Buy) – $31.54
S4 (Short Breakout) – $31.43
S5 (Breakout Target 1) – $31.30
S6 (Breakout Target 2) – $31.25

By using the traditional method of calculation, the weekly levels of importance for AT&T Inc (T) are presented as follows:

Central Pivot Point – $32.08
R1 – $32.65
R2 – $33.61
R3 – $34.18
R4 – $34.75

S1 – $31.12
S2 – $30.55
S3 – $29.59
S4 – $28.63

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