For once, a behemoth corporation might be being too circumspect about its financial forecast.
That’s what brokerage J.P. Morgan thinks about AT&T Inc. (T), which recently reported a 23.6 percent drop in profit on increased iPhone adoption. AT&T execs also expressed pessimism about 2009 because of the recession.
But J.P. Morgan upgraded AT&T’s stock on Wednesday, from neutral to overweight. Analyst Mike McCormack said the carrier’s projections of declines in wireless are too dour and that its conservative forecast leaves room to “exceed expectations.”
AT&T’s shares were up 2.06 percent at $23.68 in mid-afternoon trading.