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.