AT&T Raised at Credit Suisse Given Concern Verizon to Get IPhone

AT&T Inc. was raised to “outperform” at Credit Suisse Group AG, which said Verizon Communications Inc.’s likely introduction of the iPhone in the first quarter won’t hurt AT&T’s business as much as investors fear.

“The impact from the loss of iPhone exclusivity should be substantially less than current valuations imply,” Jonathan Chaplin, a Credit Suisse analyst, wrote in a report sent to clients today. AT&T is currently the only U.S. company that offers Apple Inc.’s iPhone.

Chaplin also said investors will be willing to pay more for companies, such as AT&T and Verizon, that offer relatively high dividend yields and the ability to increase earnings amid slower economic growth. The analyst previously had a “neutral” rating on AT&T.

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