AT&T (T) stock has slipped 0.9% over the past 12 months, with a recent 2.4% gain in the last week but a 6.8% drop over the past month, leaving shares at $26.12. Wall Street’s analysts are moderately bullish, with a 12‑month average price target of $30.85, implying meaningful upside from current levels.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Among the loudest voices is Sebastiano Petti of J.P. Morgan, who reiterated a Buy rating on May 4, 2026 and set a $33 price target, above the street consensus. That target suggests further upside as investors focus on AT&T’s push into fiber, 5G, and converged bundles to win market share without sacrificing long‑term customer value.
Petti argues that years of investment in fiber and 5G, plus relatively attractive marginal costs, give AT&T a strong position to gain share in underpenetrated segments like small and midsize businesses. While initiatives such as OneConnect and bundle expansion may temporarily pressure average revenue per user, he sees this as a smart trade‑off for stronger customer‑relationship growth and more new‑to‑AT&T accounts.
The analyst highlights AT&T as a top pick on the U.S. Equity Analyst Focus List, pointing to accelerating EBITDA and free cash flow growth, and double‑digit EPS growth through 2028 supported by robust fiber expansion and strategic deals. Acquisitions of Lumen’s consumer fiber business and additional spectrum from EchoStar are seen as enhancing AT&T’s ability to capture convergence‑driven revenue through the end of the decade.
From a valuation angle, Petti notes AT&T currently trades at 7.0x 2027 expected EV/EBITDA and 9.0x 2027 free cash flow per share, levels he views as attractive given the growth outlook and planned capital returns of over $45 billion through 2028. With his $33 target implying 7.9x 2027 EV/EBITDA and 11.2x 2027 FCF per share, this N‑star analyst, ranked 3015 out of 12,175 with a 59.69% success rate and 5.9% average return per rating, reinforces the ModerateBuy stance. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.