Summary
AT&T continues to recover from the initial selloff following the close of the Time Warner merger.
WarnerMedia has made several strides in the last few months to suggest the division isn't a noose on the wireless business.
The stock should have a base target of $40 that equates to about 10x EPS targets.
After a period of incredible weakness surrounding the closure of the Time Warner merger, AT&T (T) is finally acting better. The stock has gotten a bid around the $30 lows as the DirecTV path from my previous research continues to play out confirming a $40 base case.
Time Warner Seen As Mistake
Anybody looking at how Verizon Communications (VZ) has traded over the last year can easily see how the market prefers a focused company. Verizon has pulled back from media ambitions as the Oath division CEO recently left the company while AT&T bought Time Warner for HBO and other media assets.
