Citi analyst Michael Rollins upgraded AT&T (T) to Buy from Neutral with an unchanged price target of $34. The stock closed yesterday down 24c to $29.91.

The analyst expects AT&T to further benefit from the "measured" promotional environment in wireless, while improving its competitive position from FirstNet and the marketing of its network enhancements, branded 5G Evolution. Further, the company has "several levers" to manage free cash flow and support its net debt deleveraging goals for 2019, Rollins tells investors in a research note. In addition, the analyst believes the stock's 23% decline year-to-date provides a better risk/reward scenario.

AT&T trades at a price-to-earnings ratio of about eight times the analyst's revised 2019 outlook and at a dividend yield of about 6.7%. He sees a buying opportunity at current share levels.