In a report released today, Laurent Yoon from Bernstein upgraded AT&T to a Buy, with a price target of $32.00.
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Laurent Yoon has given his Buy rating due to a combination of factors that highlight AT&T’s strategic positioning and growth potential. The company is making a significant investment by acquiring a large block of low and mid-band spectrum from Echostar, which is expected to enhance its wireless capabilities and expand its Fixed Wireless Access (FWA) offerings. This acquisition, though costly, is seen as a necessary step for AT&T to strengthen its mid-band portfolio and increase its market share in the broadband and wireless sectors.
Yoon believes that this strategic move will allow AT&T to aggressively pursue new broadband subscribers and advance its convergence strategy, leading to increased wireless net additions. The expanded spectrum is anticipated to accelerate FWA growth, with expectations of surpassing previous subscriber forecasts. While competition in the sector is expected to intensify, AT&T’s structural advantages in fiber, FWA, and wireless economics position it favorably against competitors. Consequently, Yoon maintains an Outperform rating for AT&T, with an adjusted price target of $32, reflecting the company’s enhanced network capacity and growth prospects.
According to TipRanks, Yoon is a 3-star analyst with an average return of 7.7% and a 70.45% success rate. Yoon covers the Communication Services sector, focusing on stocks such as Netflix, Walt Disney, and Warner Bros.
In another report released on September 2, J.P. Morgan also maintained a Buy rating on the stock with a $33.00 price target.