Goldman Sachs analyst James Schneider maintained a Buy rating on AT&T on August 26 and set a price target of $32.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
James Schneider has given his Buy rating due to a combination of factors that highlight AT&T’s strategic moves to enhance its growth prospects. The recent transaction to acquire wireless spectrum licenses is seen as a positive step that extends AT&T’s growth runway in both core mobile and fixed wireless sectors. This acquisition, despite its premium price, is expected to solidify AT&T’s position in the mobile market, ensuring the company has the necessary spectrum to support future growth.
Furthermore, Schneider notes that AT&T’s commitment to maintaining capital returns through share buybacks and its focus on key financial metrics like wireless net additions and fiber subscriber growth are likely to bolster investor confidence. Although there might be a short-term impact on earnings per share and free cash flow, the long-term outlook remains positive with expected accretion starting in the third year post-transaction. These factors collectively contribute to the Buy rating, as they suggest a sustainable growth trajectory for AT&T.
In another report released yesterday, Bernstein also maintained a Buy rating on the stock with a $31.00 price target.
Based on the recent corporate insider activity of 131 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of T in relation to earlier this year.