AT&T upgraded to Overweight from Equal Weight at Wells Fargo

Wells Fargo analyst Eric Luebchow upgraded AT&T to Overweight from Equal Weight with a price target of $22, up from $17. The analyst views the U.S. telecom sector as a relatively defensive play for 2023, saying wireless subscriber growth should remain above historical levels, fiber-to-the-home construction should still grow and fixed wireless should continue taking share. However, he recommends investors be selective given the current inflationary backdrop. Luebchow named AT&T raised his top wireless pick for 2023 on upside potential to consensus estimates, its better balance sheet and attractive valuation.