Assessing AT&T: Insights From 13 Financial Analysts

AT&T T underwent analysis by 13 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated AT&T and provided 12-month price targets. The average target is $27.96, accompanied by a high estimate of $32.00 and a low estimate of $26.00. Observing a 9.48% increase, the current average has risen from the previous average price target of $25.54.

Investigating Analyst Ratings: An Elaborate Study

An in-depth analysis of recent analyst actions unveils how financial experts perceive AT&T. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to AT&T. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AT&T compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for AT&T's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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.

Unveiling the Story Behind AT&T

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 15% 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 recently agreed to sell its 70% equity stake in satellite television provider DirecTV to its partner, private equity firm TPG.

AT&T: Delving into Financials

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

Revenue Growth: AT&T displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 0.86%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Communication Services sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 12.48%, 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 3.9%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): AT&T's ROA excels beyond industry benchmarks, reaching 1.02%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.35, caution is advised due to increased financial risk.

The Basics of Analyst Ratings

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.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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