AT&T (T) stock has fallen 1.0% over the past year, slipping 6.9% in the last month but edging up 0.2% in the past week. Wall Street’s analysts are moderately bullish, with a 12‑month average price target of $30.97 versus the last close at $26.10, implying room for further gains if the thesis plays out.
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Sebastiano Petti (J.P. Morgan) reiterated his Buy rating on T on 5/4/2026 and set a $33 price target, signaling meaningful upside from current levels. This N‑star analyst ranks 3052 out of 12173 on TipRanks, with a 58.46% success rate and a 5.80% average return per rating, making his view a data‑backed vote of confidence.
Petti argues that years of investment in fiber and 5G have given AT&T an asset mix and cost structure that should support market share gains while preserving attractive customer lifetime value. He notes that the push into underpenetrated segments such as small and midsize businesses, and converged bundles with broadband, may temporarily pressure ARPU but should lift overall network yield.
The analyst highlights AT&T as a top pick on the U.S. Equity Analyst Focus List, citing accelerating EBITDA and free cash flow growth from 2025 to 2028 and double‑digit EPS growth, alongside more than $45 billion in expected capital returns. He also points to strategic acquisitions, including Lumen’s consumer fiber business and EchoStar spectrum, as strengthening AT&T’s ability to capture convergence‑driven revenue.
According to Petti’s valuation work, the $33 December 2026 price target reflects 11.2x 2027 free cash flow per share and is supported by a discounted cash flow model using an 8.0% WACC and 1.5% perpetual growth rate. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.