JPMorgan analysts have added AT&T (NYSE:T) and First Citizens Bancshares (FCNCA) to their U.S. Analyst Focus List (AFL) for July.
The list highlights investment ideas tailored for specific strategies like growth or value investing.
AT&T's inclusion comes on the belief that the company's fundamentals and financial performance have improved, justifying a higher valuation.
JPMorgan analysts see "unwarranted discount versus peers given improved fundamentals and EBITDA/FCF growth."
First Citizens BancShares (FCNCA) is another new addition to the list. JPMorgan has an "Overweight" rating on FCNCA, anticipating "greater upside in FCNCA over the near as well as longer term."
In the near term, analysts expect strong venture capital (VC) investment trends to benefit First Citizens, along with potential guidance increases for 2024 due to rising interest rates.
Over the longer term, JPMorgan sees a potential rebound in VC investment activity and exit/IPO markets as tailwinds for FCNCA.
The analysts believe this could significantly benefit the company's deposits, especially considering the sizable amount of "dry powder" waiting to be deployed by venture capitalists. With shares trading at a low valuation, JPMorgan views FCNCA as a "top overall pick" with long-term potential.