AT&T price target raised to $21 from $18.50 at Scotiabank

Scotiabank raised the firm’s price target on AT&T to $21 from $18.50 and keeps an Outperform rating on the shares. The analyst is neutral into the Q4 earnings reports for the U.S. telecom names. T-Mobile and AT&T remain Scotiabank’s favorite names within its U.S. coverage list with Verizon “moving up the ranks as it slowly repositions its wireless franchise.” The firm increased target prices after adjusting cost of debt to reflect the lower term structure for corporate bonds since Q3. It continues to favor names with higher exposure to wireless versus wireline while also focusing on companies with expanding free cash flow growth outlooks.