Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Markets & Finance

Merrill Downgrades AT&T to 'Sell'


Merrill Lynch downgraded AT&T (T) to sell from neutral.

Analyst Adam Quinton says AT&T's enterprise recovery continues to be delayed, and consumer-competitive intensity is increasing as regional bells pursue bundles and cut prices. He says it's increasingly likely that MCI will emerge from Chapter 11 before the end of the year, potentially increasing the competitive intensity in the long-distance telephone space.

Quinton says AT&T's valuation is hard to pin down as he thinks revenue and earnings per share will decline for the next several years. He recommends investors looking for yield in the telecom space switch to Verizon, his preferred big-cap telecom, which has a 3.9% yield, vs. AT&T's 3.6% yield.

Quinton sees $2.21 2003 earnings per share for AT&T, and $1.70 earnings per share for 2004 (GAAP).


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus