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Introduction
The last decade was certainly not favorable for AT&T (NYSE:T), who sees their share price back to the same depths as during late 2008 and early 2009 at the bottom of the global financial
AT&T: Recession Knocking, Already Priced For A Depression
Summary
- The last decade was certainly not favorable for AT&T, which sees its share price back to the same levels as during the global financial crisis.
- One week ago their second quarter of 2022 results sent their share price tumbling as their free cash flow guidance was slashed due to customers taking longer to pay bills.
- This seems ominous given the recent recession fears but thankfully, at least they can easily sustain their dividends, although it still risks delaying their dividend growth.
- Thankfully, their shares appear to be already priced for zero growth perpetually into the future, which I feel would be like a depression and thus indicates minimal downside risk.
- This sees very favorably skewed results given the prospects to generate significant alpha under more favorable scenarios, which I believe makes a strong buy rating appropriate.
I primarily focus on income investments, as well as deep value and contrarian opportunities.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of T either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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