AT&T Stock Forecast: Trending Moderate Buy Among Analysts

AT&T (T) stock has risen 2.1% over the past week, slipped 1.8% over the past month, and is up 3.7% over the last twelve months. Wall Street’s analysts are moderately bullish, with a 12‑month average price target of $29.25 versus a last closing price of $24.07. This consensus implies meaningful upside potential over the coming year as investors weigh the company’s improving fundamentals against a still‑competitive telecom landscape.

One of the most recent voices backing AT&T is analyst Michael Funk, who reiterated a Buy rating on January 28, 2026, and set a price target of $34.00. From the recent price around $24, Funk’s target suggests substantial upside based on his view that AT&T is best positioned to win market share and deliver higher profitability and shareholder returns. His stance aligns with the broader ModerateBuy consensus and reflects growing confidence in the company’s strategy and financial trajectory through 2028.

Funk’s report highlights AT&T’s strong 4Q25 performance as a key driver of his positive outlook. The company’s quarterly revenue of $33.5 billion beat both his estimate of $32.6 billion and the Street’s $32.8 billion, while adjusted EBITDA of $11.2 billion came in ahead of his $11.0 billion forecast and the Street’s $11.1 billion. Free cash flow of $4.2 billion also topped expectations of $4.0 billion. Even though post‑paid phone net additions of 421,000 were slightly below his 434,000 estimate, they were in line with the broader market view and did not dent the bullish narrative.

Looking ahead, AT&T’s multi‑year guidance out to 2028 underpins the bullish case. Management is guiding for 2026 low‑single‑digit service revenue growth, 3%–4% adjusted EBITDA growth, adjusted EPS of $2.25–$2.35, capex of $23–$24 billion, and free cash flow of more than $18 billion. Funk nudged his own 2026 estimates higher, lifting expected adjusted EBITDA growth to 3.4%, free cash flow to $18.1 billion, and EPS to $2.31. He believes the $34 target is justified by applying a 13x price‑to‑free‑cash‑flow multiple to 2026 estimates, supported by expected FCF growth, share buybacks, and dividend yield.

Strategically, the anticipated close of Lumen Technologies’ fiber assets in 1Q26 is seen as a catalyst that could strengthen AT&T’s hand in both wireless and broadband markets. Funk notes that recent wireless plan changes at AT&T and T-Mobile, along with management commentary, suggest a cooling of competitive intensity after a particularly promotional fourth quarter. With consensus earnings expectations for the coming years and a clearer path for cash generation, AT&T is drawing renewed interest from value‑oriented investors. This N‑star analyst ranks 11,682 out of 11,984 on TipRanks, with a 35.03% success rate and an average return of -8.40% per rating, metrics that investors may weigh when considering his bullish stance. Never miss a stock rating. Find all the latest ratings on TipRanks’ Top Wall Street Analysts page.