Matthew Griffiths, an analyst from Bank of America Securities, reiterated the Buy rating on AT&T (T – Research Report). The associated price target is $28.00.
Matthew Griffiths has given his Buy rating due to a combination of factors that suggest AT&T is well-positioned for growth. The company is expected to increase its subscriber share in the wireless and fiber segments, which is anticipated to drive growth in EBITDA and free cash flow. Additionally, AT&T is on track to meet its leverage target by mid-year, which will enable it to start its share repurchase program, complementing its stable dividend.
Furthermore, AT&T has reiterated its guidance on free cash flow and other financial metrics, providing confidence in its financial outlook. The company expects to achieve significant free cash flow and has plans for substantial share buybacks and dividends over the next few years, which are supported by the board’s authorization. These strategic financial moves, along with the expected proceeds from divestitures and sales, underpin Griffiths’s positive outlook on AT&T’s stock.
In another report released yesterday, RBC Capital also maintained a Buy rating on the stock with a $28.00 price target.
T’s price has also changed moderately for the past six months – from $21.360 to $26.840, which is a 25.66% increase.
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