Investors may like AT & T for its juicy dividend, but the underlying shares also have "significant upside" ahead, according to Goldman Sachs.
The Wall Street investment bank sees a number of factors at play that should boost returns for the Dallas-based telecom giant, which pays a dividend yield of 4.89%.
Overall, Schneider anticipates sustained EBITDA growth of 3%, which is 100 to 200 basis points faster growth than Wall Street is currently modeling, he said.
That sustained improvement on EBITDA growth should warrant a higher multiple over time, he added.
The stock, which hit a 52-week high on Monday, is up 37% year to date, excluding the dividend.
Persons:
Goldman Sachs, Goldman, James Schneider, Schneider, T's
Organizations:
Dallas, Verizon, Mobile
Locations:
United States