In-Depth Examination Of 7 Analyst Recommendations For AT&T

AT&T T underwent analysis by 7 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.

In the assessment of 12-month price targets, analysts unveil insights for AT&T, presenting an average target of $21.79, a high estimate of $26.00, and a low estimate of $17.00. This upward trend is apparent, with the current average reflecting a 2.16% increase from the previous average price target of $21.33.

Investigating Analyst Ratings: An Elaborate Study

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: 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

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.

About AT&T

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's Economic Impact: An Analysis

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: AT&T's net margin is below industry averages, indicating potential challenges in maintaining 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 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): 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.

Analyst Ratings: Simplified

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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