UPDATE: Credit Suisse Initiates Coverage on AT&T on Attractive Relative Valuation

In a report published Wednesday, Credit Suisse analyst Joseph Mastrogiovanni initiated coverage on AT&T (NYSE: T) with an Outperform rating and $38.00 price target.

In the report, Credit Suisse noted, “With competition heating up in the U.S. wireless market, we are positive on AT&T relative to VZ based on valuation, dividend yield, and strategic position. The company is trading at a discount to peers and its ten-year historical average. We believe that the discount and superior dividend yield provide investors with a margin of safety. We expect valuation to close in on its historical average as management executes on a number of initiatives.”

AT&T closed on Tuesday at $34.75.