A bullish stance on AT&T’s share pricing calls for an EPS of $2.6, with stock trading at a multiple of 15. This valuation is based on the assumption that there will be growth in net subscriber count...
as the company enhances its networks and increases it network coverage in the domestic, as well as foreign markets. Currently, AT&T is making moves to buy a stake in the European market, which will have a significant influence on AT&T’s global presence and network coverage. The postpaid Average Revenue Per User will rise continuing the momentum of last 5 quarters. The Bear Case calls for Annual EPS of $2.52 with stock trading at a multiple of 12.9. This is on back of market saturation as competitors fight to gain market share with overall market size remaining the same. Adverse ruling by the court against U-Verse could negatively impact the company’s earnings.
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