Deutsche Bank (DB) reiterated its "Hold" rating on AT&T Inc. (NYSE:T) due to the potential for further reductions to its EPS outlook until margin pressures are contained.
The bank, which has a price target of $32 on the stock, cut its 2012 EPS estimate for the company to $2.32 from $2.44, near the lower end of T's implied guidance range of $2.30 to $2.35.
DB said the guidance revision primarily reflects the impact of lingering margin pressures, especially in wireless where smartphone subsidy expense remains elevated. To some extent, this may be offset by T's 300M share buyback, the bank wrote.
Shares of the Dallas, Texas-based company fell 0.68 percent to $29.25 on Friday. The stock has been trading between $27.20 and $31.94 over the past year.
