HSBC upgrades AT&T to Buy, sees opportunity on selloff

HSBC analyst Adam Fox-Rumley upgraded AT&T to Buy from Hold with an unchanged price target of $21. The "severely negative market reaction" to the company’s lower subscriber growth and "weak" Q1 free cash flow generation offers an opportunity, the analyst tells investors in a research note. The firm says AT&T’s growth in subscribers and EBITDA are still solid, and that its fiber upgrade appears the right strategy with optionality beyond the current footprint. Its guidance is "far from unreachable," contends HSBC.