Analyst Note| Michael Hodel, CFA |
We found a lot to like in AT&T’s second-quarter results. The wireless business continues to gain share, HBO Max again delivered solid customer additions, the consumer broadband business returned to revenue growth, and the television business improved both customer losses and profitability. The firm has also announced additional strategic moves this week that should benefit the business. The wireless partnership with Dish Network promises to add another avenue for growth, and the sale of the Latin American television business further simplifies AT&T’s operations. AT&T remains mired in transition, but we believe the resulting complexity has created an opportunity to invest. We don’t expect to materially change our $36 fair value estimate.