Forecasting The Future: 4 Analyst Projections For AT&T

In the preceding three months, 4 analysts have released ratings for AT&T T, presenting a wide array of perspectives from bullish to bearish.

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

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $20.88, a high estimate of $24.00, and a low estimate of $17.00. Observing a downward trend, the current average is 5.09% lower than the prior average price target of $22.00.

Analyzing Analyst Ratings: A Detailed Breakdown

In examining recent analyst actions, we gain insights into 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: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to AT&T. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AT&T compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for AT&T's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

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.

Discovering AT&T: A Closer Look

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 Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: AT&T's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2024, the company experienced a revenue decline of approximately -0.37%. This indicates a decrease 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: AT&T's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 11.31%, the company may face hurdles in effective cost management.

Return on Equity (ROE): AT&T's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.27%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 0.84%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: AT&T's debt-to-equity ratio stands notably higher than the industry average, reaching 1.44. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are 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 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.

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