UPDATE: Bank of America Reiterates on AT&T Following Mobile World Congress

In a report published Thursday, Bank of America analyst David W. Barden reiterated a Neutral rating on AT&T (NYSE: T), but lowered the price target from $38.00 to $35.00.

In the report, Bank of America noted, “Press reports emerging from last week's Mobile World Congress indicate AT&T remains interested in pursuing M&A in Europe. We don't expect any kind of announcement in the near term given AT&T's statement at the request of the UK Takeover Panel that it does not intend to acquire Vodafone, limiting its ability to make an approach before July 27, 2014. In addition, key regulatory issues T has highlighted, like spectrum ownership, consolidation remedies, jurisdictional issues, etc. remain unsettled in our view.

"Waiting until year end or 2015 to make an approach could see incremental regulatory clarity emerge and allow AT&T to speak to 2016E Vodafone forecasts and avoid Project Spring capex dilution in ‘14/'15. In our view, there remain 3 chief risks to delaying including: 1) the state of the credit markets (cost/liquidity); 2) VOD's own execution which could drive up the shares or impair the businesses; and 3) the possibility that VOD pursues some alternative strategic action(s).”

AT&T closed on Wednesday at $32.15.