On Monday, KeyBanc Capital Markets maintained its Sector Weight rating on AT&T stock (NYSE:T). The firm’s analyst, Brandon Nispel, provided insights following a discussion with AT&T’s Senior Vice President of Finance and Investor Relations, Brett Feldman, at KeyBanc’s recent ETS conference. The conversation at the conference centered around AT&T’s January performance in Mobility subscriber net additions, the company’s strategy for decommissioning Copper, and the ongoing Fiber build program.
Nispel noted that AT&T is on the right track with several strategic initiatives that are likely to support a healthy financial growth profile, particularly in terms of EBITDA and free cash flow (FCF). These initiatives include expanding the Fiber network, pursuing convergence, and the decommissioning of Copper infrastructure. The analyst expressed a positive outlook on AT&T in comparison to its peers, T-Mobile (TMUS) and Verizon (NYSE:VZ), due to AT&T’s growth prospects and valuation.
Despite a favorable view on AT&T’s strategic direction, KeyBanc’s stance remains neutral. The firm cited a few concerns, including the belief that AT&T’s stock price may have outpaced the company’s fundamentals in the short term. Additionally, there are apprehensions about future capital demands, particularly concerning Spectrum acquisitions. KeyBanc also highlighted potential increased competition in the Wireless sector, anticipating that Cable providers could intensify their market presence within the next 12 to 18 months.
AT&T’s focus on its Fiber network and convergence, along with the process of phasing out older Copper technology, are part of the company’s efforts to stay competitive and meet the evolving demands of both the market and its customer base. These steps are expected to contribute to AT&T’s financial stability and growth, as outlined by the KeyBanc analyst during the conference.
In other recent news, AT&T has received a positive outlook revision from S&P Global (NYSE:SPGI) Ratings, highlighting the company’s solid earnings growth and improved credit metrics. The telecommunications giant is projected to continue expanding revenue and margins, driven by healthy mobile segment earnings and increased fiber broadband penetration. AT&T’s strategic growth plan, discussed by CEO John Stankey, outlines a commitment to customer satisfaction and network investment, with over $50 billion expected in financial capacity over the next three years. The company plans to allocate more than $40 billion to shareholders through dividends and share repurchases, maintaining a dividend of $1.11 per share and authorizing $10 billion in stock buybacks.
Meanwhile, AT&T has scheduled a series of fireside chats with key executives to provide updates to analysts and investors, reinforcing its commitment to meeting financial and operational goals for 2025. These discussions will be accessible via live webcasts, offering insights into AT&T’s progress and future outlook. Additionally, the FCC (BME:FCC) has granted Starlink, a subsidiary of SpaceX, permission to operate a direct-to-cell service with T-Mobile, enhancing connectivity in remote areas. This decision allows for faster and more reliable service, despite opposition from competitors like AT&T and Verizon.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.