NEW YORK, February 10 (FinanceEnquiry.com) - Analyst Todd Rosenbluth of S&P Capital IQ reiterates his BUY rating on the shares of AT&T (NYSE:T), while reducing his estimates for the company. The target price is set to $34.

In a research note published this morning, the analyst mentions that AT&T’s EPS growth in 2012 would be driven by wireless margin expansion, supported by recent price hikes, customer growth and lower smartphone subsidies compared to 2011. Moreover, the analyst expects scope for improvement in the company’s wireline business as the economy grows. S&P Capital IQ believes that there is an increased likelihood of AT&T spinoff its 6 million rural consumer lines or finding a network expansion solution to support EBITDA growth. The EPS estimate for 2012 has been reduced from $2.46 to $2.42 on non-operating costs. The company offers 5.8% dividend yield.