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AT & T is coming out on top in the epic battle between wireless companies to win over customers and gain subscribers, according to Wells Fargo. Analyst Eric Luebchow upgraded the telecom company to overweight from an equal weight rating, saying in a Tuesday note that shares look more attractive than Verizon ‘s and offer a superior growth trajectory. “Despite stock outperformance in 2022 (-0.9% vs. S & P -19.4%), we see momentum sustaining into 2023 as EBITDA and FCF growth inflect higher and deleveraging starts to provide capital allocation flexibility (including possible share repurchases),” he said, calling the stock his top wireless pick in 2023. Luebchow also views AT & T as a way for investors to play defense in a difficult market and inflationary backdrop. The company’s growth momentum looks better positioned than that of Verizon, which faces earnings risks from rising rates and consumer phone declines, he added. “TMUS and T should continue to lead the industry in subscriber adds, although cable (and even possibly DISH) remain key competitive forces to watch in an increasingly crowded competitive landscape,” Rollo said. Luebchow lifted his price target on AT & T to $22 from $17 a share, implying that shares stand to gain as much as 16% from Monday’s close. The stock outperformed in 2022, falling just 0.9% and is already up 3.4% in the new year. Shares gained 1.1% before the bell. — CNBC’s Michael Bloom contributed reporting
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