Assessing AT&T: Insights From 4 Financial Analysts

In the latest quarter, 4 analysts provided ratings for AT&T T, showcasing a mix of bullish and bearish perspectives.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $20.12, along with a high estimate of $22.50 and a low estimate of $17.00. Highlighting a 4.19% decrease, the current average has fallen from the previous average price target of $21.00.

Decoding Analyst Ratings: A Detailed Look

A clear picture of AT&T's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to AT&T. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of AT&T compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of AT&T's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of AT&T's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on AT&T analyst ratings.

Get to Know AT&T Better

The wireless business contributes about two thirds 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 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.

AT&T: A Financial Overview

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Decline in Revenue: Over the 3 months period, AT&T faced challenges, resulting in a decline of approximately -0.37% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's 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: AT&T's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 11.31%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): AT&T's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.27%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): AT&T's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.84%, the company may face hurdles in achieving optimal financial performance.

Debt Management: AT&T's debt-to-equity ratio surpasses industry norms, standing at 1.44. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

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.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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