Deep Dive Into AT&T Stock: Analyst Perspectives (7 Ratings)

Ratings for AT&T T were provided by 7 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $24.14, with a high estimate of $30.00 and a low estimate of $18.00. This upward trend is apparent, with the current average reflecting a 6.3% increase from the previous average price target of $22.71.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of AT&T by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AT&T. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AT&T compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of AT&T's stock. This analysis reveals shifts in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of AT&T's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on AT&T analyst ratings.

Delving into AT&T's Background

The wireless business contributes nearly 70% of AT&T's revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.

Financial Insights: AT&T

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Challenges: AT&T's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.4%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 11.9%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): AT&T's ROE stands out, surpassing industry averages. With an impressive ROE of 3.38%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): AT&T's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.89%, the company may face hurdles in achieving optimal financial performance.

Debt Management: AT&T's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.4, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.