Wall Street Thinks This 7.6% Yielding Stock Has Up to 91% Upside. Should You Buy?
Most of the time, high-yielding stocks aren't coupled with high target prices from Wall Street. Instead, high yields usually convey market uncertainty, which is usually tied to a lower price target. However, AT (NYSE: T) has both a high 7.6% yield and a price target of $28 from Ivan Feinseth at Tigress Financial, indicating a 91% upside.
While that's the top level, an average of 20 analysts puts the one-year target at $19, indicating nearly a 30% upside. No matter how you slice it, at's stock looks undervalued, at least according to analysts. Throw in a mouth-watering yield, and there seem to be a lot of reasons to purchase at stock. But should you actually do it? Let's find out.
AT is the leading telecom provider in the U.S., accounting for about 46% of all subscriptions as of second-quarter 2023. However, because roughly 85% of people in the U.S. now have a smartphone, there's not a lot of opportunity to grow rapidly. On the flip side, because telecom companies have practically become tech utilities, there isn't a lot of revenue variance either.
Source Fool.com
