Shares of AT&T Inc. (T) soared 8.4% in premarket trading Monday, after activist investor Elliott Management outlined a "value-creation opportunity" that it believes could lift the telecom and media giant's stock by more than 65% to a record high. Elliott, which manages funds that beneficially own $3.2 billion worth of AT&T stock, which is about 1.2% of AT&T's $264.9 billion in market capitalization as of Friday's stock closing price of $36.25, said the stock is "deeply undervalued," as the company's "world-class collection of assets" are priced at historically discounted levels. Elliott says its "Activating AT&T Plan" recommends increased strategic focus, improved operational efficiency, a formal capital allocation framework and enhanced leadership and oversight. Elliott believes its plan could lift the stock price to above $60 by the end of 2021, which would be above the July 16, 1999 record close of $59.19, and 65.5% above Friday's close. AT&T's stock has gained 12.9% over the past 12 months, while the SPDR Communication Services Select Sector ETF (XLC) has tacked on 6.4% and the S&P 500 has gained 3.7%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
September 09, 2019 08:06 ET (12:06 GMT)
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