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AT&T (NYSE:T) is a core holding of ours, and is my stock pick of the year for 2012. Time is running out and the share price has been under pressure, as has the entire market of late. I still believe that November and December will prove to be very strong for the company.

Apparently so do some key analysts. Just the other day, Credit Suisse initiated coverage of AT&T with an outperform rating. This article goes into some detail about this;

"Credit Suisse began coverage on shares of AT&T in a research note issued to investors on Monday. The firm issued an outperform rating on the stock."

Not only has Credit Suisse weighed in, but so has Barclay's and JP Morgan. Barclays has a price target of $39.00/share, and JP Morgan has a $38.00/share target. Both of these prices represent about a 10% premium, excluding the current dividend that is now OVER 5%.

A 15% upside is nothing to sneeze at for 2013, but I think the numbers are conservative.

There are a few analysts who believe that AT&T is not a solid buy right now. Most notably, Sanford Bernstein, who has a hold (market perform) rating with a share price of $31.00. More than 10% lower than the current price. Why hold it then? Why not raise the target price to at least where it is now, and then say to hold it. That rating simply confuses me.

Just today, Oppenheimer re-iterated their outperform rating for T, with a price target of $42.00/share. That sounds about right in my view also. This article details this new report.

"Oppenheimer reaffirmed their outperform rating on shares of AT&T in a research note released on Tuesday morning. They currently have a $42.00 price target on the stock."

Earnings Being Released Tomorrow

Last Quarter AT&T beat earnings estimates by $.03/share and revenues by a slim .3%. This time around the expectations are that profits are expected to drop 1.5% ($.60/share) and revenues increase by 3% ($31.58 billion).

I still maintain that AT&T is a terrific dividend paying company with a 30 consecutive year history of increasing dividends and offering wonderful shareholder value in a very strong business sector.

I think they will beat earnings as well as revenues. If they do, the stock should surge.

Source: AT&T Reports Earnings Tomorrow And Has A New Outperform Rating