Citi analyst Michael Rollins maintained a Buy rating on AT&T (T – Research Report) on February 3 and set a price target of $28.00.
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Michael Rollins has given his Buy rating due to a combination of factors that highlight AT&T’s strategic financial positioning and growth potential. He acknowledges that AT&T is on course to achieve strong financial outcomes by 2025 by following the successful strategies implemented in 2024. This includes growing strategic product revenue through volume and average revenue per user (ARPU) expansion, implementing cost reductions, particularly in corporate areas in 2025, and improving their balance sheet with decreased net debt leverage and stabilized supplier payables.
Additionally, Rollins observes that AT&T is poised to achieve its free cash flow guidance of $16 billion or more by 2025, despite some concerns about potential exclusions from contributions such as DTV. He also notes that the wireless competitive landscape is becoming more stable, with AT&T focusing on increasing the pace of fiber passings and expanding small and medium-sized business distribution to reclaim broadband market share from cable providers. Furthermore, the pricing environment remains conducive to potential price increases, primarily targeting older rate plans rather than current retail pricing, supporting AT&T’s growth prospects.
According to TipRanks, Rollins is a 5-star analyst with an average return of 12.1% and a 65.15% success rate. Rollins covers the Communication Services sector, focusing on stocks such as AT&T, Lumen Technologies, and Verizon.
In another report released yesterday, Tigress Financial also reiterated a Buy rating on the stock with a $32.00 price target.