Analyst Gregory Williams from TD Cowen maintained a Hold rating on AT&T (T – Research Report) and increased the price target to $30.00 from $29.00.
Gregory Williams has given his Hold rating due to a combination of factors influencing AT&T’s current market position. The company reported strong first-quarter results, including increased phone and fixed wireless access additions, as well as a boost in Business Wireline EBITDA. Additionally, AT&T accelerated its stock buyback program, signaling confidence despite broader economic uncertainties.
However, Williams noted concerns regarding elevated churn rates and higher device upgrade activity, which could lead to increased operational expenses and pressure on free cash flow. The valuation of AT&T remains high, with its dividend yield trading below the 10-year note rate, which suggests limited upside potential. Despite management’s confidence in meeting EBITDA guidance, these challenges contribute to a cautious outlook, justifying the Hold rating.
According to TipRanks, Williams is an analyst with an average return of -3.7% and a 43.26% success rate. Williams covers the Communication Services sector, focusing on stocks such as AT&T, Cogent Comms, and Lumen Technologies.