Breaking Down AT&T: 16 Analysts Share Their Views

Across the recent three months, 16 analysts have shared their insights on AT&T T, expressing a variety of opinions spanning 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' evaluations of 12-month price targets offer additional insights, showcasing an average target of $29.5, with a high estimate of $32.00 and a low estimate of $26.00. This current average has increased by 7.16% from the previous average price target of $27.53.

Decoding Analyst Ratings: A Detailed 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.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |Jonathan Atkin |RBC Capital |Raises |Outperform | $30.00|$28.00 | |Simon Flannery |Morgan Stanley |Raises |Overweight | $31.00|$30.00 | |Richard Choe |JP Morgan |Raises |Overweight | $31.00|$28.00 | |Gregory Williams |TD Securities |Raises |Hold | $30.00|$29.00 | |Maher Yaghi |Scotiabank |Raises |Sector Outperform| $29.50|$29.00 | |Vijay Jayant |Evercore ISI Group |Raises |In-Line | $27.00|$25.00 | |Eric Luebchow |Wells Fargo |Raises |Overweight | $30.00|$27.00 | |Maher Yaghi |Scotiabank |Raises |Sector Outperform| $29.00|$28.50 | |Timothy Horan |Oppenheimer |Raises |Outperform | $32.00|$27.00 | |Michael Rollins |Citigroup |Raises |Buy | $32.00|$28.00 | |Jonathan Atkin |RBC Capital |Raises |Outperform | $28.00|$27.00 | |Maher Yaghi |Scotiabank |Raises |Sector Outperform| $28.50|$26.00 | |Ivan Feinseth |Tigress Financial |Raises |Buy | $32.00|$30.00 | |Maher Yaghi |Scotiabank |Raises |Sector Outperform| $26.00|$24.00 | |Jonathan Atkin |RBC Capital |Raises |Outperform | $27.00|$26.00 | |Laurent Yoon |Bernstein |Raises |Outperform | $29.00|$28.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AT&T. This information provides 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 gauge the dynamics of price targets, providing 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.

Delving into AT&T's Background

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.

Key Indicators: AT&T's Financial Health

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: AT&T's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 0.86%. This signifies 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 net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.48% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): AT&T's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.9% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): AT&T's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.02% ROA, the company effectively utilizes its assets for optimal returns.

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.

Analyst Ratings: Simplified

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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