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Dallas, Texas-based AT&T Inc. (T) is one of the largest wireless service providers and leading communications service carriers in North America. With a market cap of $175.1 billion, AT&T operates through Communications and Latin America segments and serves over 240 million people as their carrier.
The telecom giant has substantially outperformed the broader market over the past year. AT&T stock has soared 40.5% over the past 52 weeks and 6.4% on a YTD basis outpacing the S&P 500 Index’s ($SPX) 22.6% surge over the past year and 2.7% gains in 2025.
Narrowing the focus, AT&T has also outperformed the SPDR S&P Telecom ETF’s (XTL) 1.6% decline on a YTD basis and 32.1% returns over the past year.
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AT&T had a great end to the year. Its stock prices soared 6.3% after the release of its impressive Q4 results on Jan 27. The company has observed solid momentum, gaining and retaining profitable 5G and fiber subscribers. During the quarter AT&T added a net 482,000 postpaid phone with an expected industry-leading churn of 85 basis points. Furthermore, it has observed 20 consecutive quarters of net add of over 200,000 in AT&T Fiber and added 307,000 subscribers in Q4.
This led to a substantial 3.3% year-over-year growth in operating revenues to $23.1 billion which surpassed the Street’s expectations. Furthermore, its postpaid phone ARPU observed a marginal growth compared to the year-ago quarter to $56.72. Meanwhile, its EBITDA increased 6.1% year-over-year to $8.9 billion and its adjusted EPS of $0.54 surpassed the consensus estimates by 12.5%, bolstering investor confidence.
However, in fiscal 2025, AT&T’s adjusted EPS is expected to dip 10.6% year-over-year to $2.02. Its earnings surprise history is mixed. While the company has surpassed the consensus estimates thrice over the past four quarters, it has missed the projections on one other occasion.
AT&T has a consensus “Moderate Buy” rating overall. Out of the 27 analysts covering the stock 15 recommend “Strong Buy,” three advise “Moderate Buy,” eight advise “Hold,” and one advocates a “Strong Sell” rating.
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This configuration is slightly more bullish than a month ago when 14 analysts recommended “Strong Buy” ratings.
On Jan. 28, Scotiabank analyst Maher Yaghi reiterated a “Buy” rating while setting the price target to $26.
While AT&T’s mean price target of $26.48 represents a 9.2% premium to current price levels. Its street-high target of $32.50 suggests a staggering 34.1% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.