AT & T ‘s prospects hold getting higher, in accordance with Raymond James. Analyst Frank G. Louthan upgraded shares of AT & T to robust purchase from outperform, saying the telecommunications firm’s return to its core enterprise has improved the inventory. “We imagine this stronger ranking is suitable given AT & T’s easier story is beginning to present up within the numbers,” Louthan wrote in a Monday observe. “We proceed to imagine a extra targeted imaginative and prescient alongside an easier line of enterprise creates a strong state of affairs for share value appreciation, and a strong, complete return.” The analyst mentioned he expects AT & T will outpace its competitor Verizon over the subsequent few quarters. Based on the observe, AT & T has extra wi-fi subscriber additions, is rising earnings per share, and increasing margins. Louthan mentioned expectations of an financial downturn has already been constructed into the telecommunications shares. “The telcos are likely to carry out worse than anticipated in an financial downturn, however a lot of this has been factored into the identify – buying and selling beneath the two, 5, and 10-year common P/E regardless of having a far easier story right this moment with much less cyclical enterprise and higher earnings progress than friends,” Louthan wrote. “Whereas we nonetheless warning buyers that telecom shares is probably not essentially the most defensive, the companies positively are, and we don’t anticipate weak spot within the fundamentals,” he continued. The analyst reiterated a $24 value goal, implying roughly 40.4% upside from Friday’s shut at $17.10. Shares of AT & T rose 1% in Monday premarket buying and selling. —CNBC’s Michael Bloom contributed to this report.