Citi places ‘Positive Catalyst Watch’ on AT&T ahead of disclosures

Citi analyst Michael Rollins added shares of AT&T (T) to the firm’s "Positive Catalyst Watch list" on expectations the company’s disclosures over the next few months will improve market confidence on the opportunity for it to generate free cash flow of $16B or better during 2023 as well as reduce capital spending significantly during 2024. This can support multiple expansion from the current level, the analyst tells investors in a research note. The firm keeps a Buy rating on AT&T. After reviewing the Q1 communication services results, Citi sees a little better industry volume and average revenue per user for both wireless postpaid phones and residential broadband service, but says overall industry revenue growth "remains sluggish." Along with AT&T, it keeps Buy ratings on T-Mobile (TMUS) and Comcast (CMCSA).