AT&T Upgraded by BNP Paribas Exane on Wireless Revenue Outlook

BNP Paribas Exane upgraded AT&T to Outperform from Neutral on September 21 and raised its price target to $30 from $26, implying roughly 18% upside from the stock's recent trading price of $25.46. The upgrade centers on revised wireless growth expectations, with the firm raising its forecast for postpaid phone average revenue per user growth to a 1.1% compound annual rate from 0.2%.

BNP estimates the improved wireless monetization could add several billion dollars to AT&T's annual revenue, EBITDA, and free cash flow over time. The call follows AT&T's second-quarter results, which showed revenue of $31.6 billion, up 2.3% year over year, and adjusted earnings per share of $0.65, versus $0.54 a year earlier.

AT&T shares are trading within a 52-week range of $19.89 to $29.44, still below the new price target.