AT&T Stock Snags Price Target Hikes After Solid Q4 Results: Retail Mood Remains Positive

Telecommunications giant AT&T, Inc.’s (T) stock received a few upward price target adjustments after the company’s results satiated Wall Street expectations.

Dallas, Texas-based AT&T reported Monday revenue of $32.3 billion and adjusted earnings per share (EPS) of $0.54. These numbers were essentially in line with the consensus.

The company said higher mobility service and equipment revenue and consumer wireline service revenue were offset by declines in business wireline and Mexico revenue. 

Adjusted earnings before interest, taxes depreciation and amortization (EBITDA) came in at $10.8 billion, up from $10.6 billion last year.

Among the operating metrics, postpaid phone net adds were 482,000, and churn was 0.85%.

AT&T guided 2025 consolidated service revenue growth in the low-single-digit range, with mobility service revenue growth at the higher end of the 2%-3% range and consumer fiber broadband revenue growth in the mid-teens. Adjusted EPS, excluding DIRECTV, is estimated at $1.97-$2.07, and capital expenditures in the $22 billion range.

Analysts at RBC Capital Markets, Bernstein TD Cowen and Scotiabank raised their price targets for AT&T stock following the print, TheFly reported.

• Bernstein upped the price target to $29 from $28 and maintained an ‘Outperform’ rating, citing a good print. The brokerage expects another year of healthy growth and margin expansion.
• RBC raised the stock price target to $27 from $26 and maintained an ‘Outperform’ rating. The firm moved up its estimates for AT&T, citing subscriber growth and progress with cost elimination.
• TD Cowen’s price target increased to $29 from $26, but the firm maintained its ‘Hold’ rating.
• Scotiabank analysts raised the price target to $26 from $24 and maintained an ‘Outperform’ rating. AT&T’s organic growth is large enough to offset the anticipated increase in cash taxes in 2025 and the significant capex spending on fiber and wireless networks, they said. 

On Stocktwits, retail sentiment toward AT&T stock remained upbeat, with the sentiment meter suggesting an ‘extremely bullish’ mood (75/100). Message volume continued to stay ‘extremely high.’

A retail watcher on the platform expects a 20% stock gain over the next two months, premised on strong fundamentals and technicals and rising contribution from fiber adoption.

Another raved about AT&T’s secure and growing dividend yield.

AT&T traded down 0.52% at $24.02 in early trading.

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