Analyst Expectations For AT&T's Future

Analysts' ratings for AT&T T over the last quarter vary from bullish to bearish, as provided by 7 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for AT&T, presenting an average target of $22.29, a high estimate of $29.00, and a low estimate of $20.00. This upward trend is apparent, with the current average reflecting a 6.14% increase from the previous average price target of $21.00.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive AT&T is derived from recent analyst actions. The following is a detailed summary of 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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

To gain a panoramic view of AT&T's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on AT&T analyst ratings.

Discovering AT&T: A Closer Look

The wireless business contributes about two thirds of AT&T's revenue following the spinoff of Warner Media. The firm is the third-largest U.S. wireless carrier, connecting 71 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 17% 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. AT&T also has a sizable presence in Mexico, serving 22 million customers, but this business only accounts for 3% 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.

Breaking Down AT&T's Financial Performance

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: AT&T displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 2.17%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 6.67%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): AT&T's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 2.06%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.52%, the company showcases effective utilization of assets.

Debt Management: AT&T's debt-to-equity ratio is below the industry average. With a ratio of 1.5, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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