Robertson Stephens upgraded its rating on AT&T Wireless (AWE) to strong buy. On July 24, the company posted 37% higher Q2 total revenue.
Analyst Frank Marsala says Q2 results were in line with his estimates, and that mobile average revenue per user and EBITDA were better than expected. Despite the strong performance, the shares sold off late in the session on July 24 owing to a broader market sell-off. In light of the company's focus on adding "high quality" customers, and his confidence that it can exceed current estimates, Marsala raised his 12-month target to $21. He says the shares appear attractively valued at the present time, valued at 11.1x enterprise value/2002 estimated EBITDA. With the split-off behind it, and a good Q2 in the bank, the analyst believes the shares are poised to move toward his target.