AT&T Surges as Analysts Bet on Cash-Rich Comeback

AT&T ( (T) ) has risen by 11.77%. Read on to learn why.

AT&T shares have climbed 11.77% over the past week, as investors warmed to a steadily improving story in an otherwise crowded telecom sector. The move comes against a backdrop of generally supportive Wall Street sentiment, with the stock carrying a Moderate Buy consensus and average 12‑month price targets around the high‑$20s, implying further upside from recent levels. While some firms such as Evercore ISI and Scotiabank remain on the sidelines with Hold ratings, the overall tone of coverage has shifted more constructive as analysts highlight AT&T’s earnings power and cash‑generation potential.

Fueling the rally, several high‑profile analysts have reiterated or initiated Buy ratings on AT&T, pointing to both solid recent performance and a clearer multi‑year roadmap. Citi’s Michael Rollins reaffirmed his bullish view, and analyst Michael Funk recently kept a Buy rating with a notably higher $34 price target, arguing that AT&T is well‑positioned to gain market share while boosting profitability and shareholder returns. Funk’s call leans heavily on robust fourth‑quarter results: revenue and adjusted EBITDA both beat Wall Street forecasts, and free cash flow came in ahead of expectations, reinforcing confidence that the company can deliver on its guidance through 2028.

Looking ahead, AT&T’s management is guiding for steady growth in service revenue, earnings and free cash flow, supported by heavy but disciplined capital spending and a focus on network quality. Analysts see additional catalysts on the horizon, including the expected closing of AT&T’s acquisition of Lumen Technologies’ fiber assets, which could strengthen its hand in both wireless and broadband. At the same time, signs that price wars in wireless are cooling offer hope for more rational competition and stable margins. Together, these factors have drawn renewed interest from value‑oriented investors, helping drive the stock’s 11.77% surge over the week as the market reassesses AT&T’s long‑term upside.