AT&T: Strong Market Position and Growth Potential with Strategic Focus on Convergence

J.P. Morgan analyst Sebastiano Petti has reiterated their bullish stance on T stock, giving a Buy rating on March 14.

Sebastiano Petti has given his Buy rating due to a combination of factors that highlight AT&T’s strong market position and future growth potential. Despite some concerns over increased competition and a slight dip in postpaid phone additions, AT&T’s overall outlook remains positive. The company is expected to achieve consistent EBITDA growth of over 3% annually and a 9% compound annual growth rate in free cash flow per share and earnings per share through 2027, which supports its solid financial foundation.
Additionally, AT&T’s strategic focus on convergence is anticipated to enhance its market share in both mobility and broadband sectors as consumer demand shifts towards bundled services. The company’s leadership in this area, alongside its robust capital returns and potential benefits from tax reforms, further strengthens its investment appeal. With a price target of $28 by December 2025, AT&T is projected to trade at favorable valuation multiples, making it an attractive option for investors.

In another report released on March 14, Raymond James also maintained a Buy rating on the stock with a $29.00 price target.