Diamonds and Dogs

3/25/25

AT&T (T) rose a percent on an upgrade from Goldman Sachs with a $40 price target or 50% upside from current levels. The analyst says AT&T is an increasingly compelling idea in the current volatile market environment because of multiple reasons including idiosyncratic market share gains within the telecom market, lack of direct connection to the "AI theme," defensive business characteristics, low stock volatility, and high dividend yield. The analyst believes a healthy wireless market will drive upside to Street estimates, coupled with solid subscriber growth and higher pricing.

KB Home (KBH) drops 5% after missing estimates by 8 cents as sales fell 5% to $1.39 billion. The CEO Jeffrey Mezger said the beginning of the industry's all-important spring selling season "was more muted" than usual. KB Homes also lowered guidance as affordability issues, uncertain economic events and geopolitical concerns are giving potential buyers pause.