What Analysts Are Saying About AT&T Stock

In the latest quarter, 8 analysts provided ratings for AT&T T, showcasing a mix of bullish and bearish perspectives.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $27.94, a high estimate of $32.00, and a low estimate of $26.00. Marking an increase of 6.44%, the current average surpasses the previous average price target of $26.25.

Interpreting Analyst Ratings: A Closer Look

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: 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 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 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.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into AT&T's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on AT&T analyst ratings.

All You Need to Know About 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.

Unraveling the Financial Story of AT&T

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3 months period, AT&T showcased positive performance, achieving a revenue growth rate of 0.86% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: AT&T's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 12.48%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): AT&T's ROE excels beyond industry benchmarks, reaching 3.9%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): AT&T's ROA stands out, surpassing industry averages. With an impressive ROA of 1.02%, the company demonstrates effective utilization of assets and strong financial performance.

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.

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.

Which Stocks Are Analysts Recommending Now?

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