AT&T, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Sebastiano Petti from J.P. Morgan reiterated a Buy rating on the stock and has a $33.00 price target.
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Sebastiano Petti has given his Buy rating due to a combination of factors including AT&T’s strong position in the convergence market and its promising medium-term EBITDA growth prospects. The company’s leadership in integrating services is expected to drive more than 3% growth in EBITDA, with potential for even greater increases. Additionally, AT&T’s capital return strategy, which includes $20 billion in buybacks through 2027, further enhances its attractiveness as an investment.
Another key factor in Petti’s positive outlook is AT&T’s strategic acquisitions, such as Lumen’s consumer fiber business and additional spectrum from EchoStar. These moves are anticipated to strengthen AT&T’s ability to capture a larger share of convergence revenue. Furthermore, the company’s current valuation is seen as appealing, trading at a multiple of 11.3 times its 2026 free cash flow per share, with a price target that suggests a rise to 12.6 times. These elements collectively support the Buy rating, positioning AT&T as a top pick on the J.P. Morgan U.S. Equity Analyst Focus List.
According to TipRanks, Petti is a 4-star analyst with an average return of 5.8% and a 60.75% success rate. Petti covers the Communication Services sector, focusing on stocks such as Array Digital Infrastructure, AT&T, and Sirius XM Holdings.