AT&T reinstated with a Buy at BofA

BofA reinstated coverage of AT&T (T) with a Buy rating and $32 price target. AT&T has “a balanced strategy” to drive accelerating growth through owned wireless and fiber assets, according to the analyst, who also calls AT&T “most positively exposed” to reintroduction of bonus depreciation among the telecom industry’s big three. AT&T trades at a 30% discount to T-Mobile (TMUS) and a 9% premium to Verizon (VZ) on a 2026 EV/EBITDA basis, notes the analyst, who argues that AT&T should trade more closely to the former than the latter given it operational momentum, strong combination of wireless and fiber assets and targeted return of capital.