On Tuesday, RBC Capital Markets updated their assessment of AT&T (NYSE:T) shares, raising the price target to $27 from the previous $26 while reiterating an Outperform rating on the stock. The revision follows AT&T's recent financial disclosures and performance metrics.
The firm's analyst highlighted AT&T's guidance for 2025, which aligns with the current consensus and echoes the forecasts shared during the Capital Markets Day held in December. The fourth quarter of 2024 financial results matched consensus expectations, but AT&T's wireless and fiber net additions exceeded projections.
RBC Capital's decision to adjust their price target upwards is based on AT&T's subscriber growth and the strides the company has made in cost elimination. The analyst stated, "We increase our estimates on the back of subscriber growth and cost-elimination progress. We increase our price target to $27 (from $26) and maintain an Outperform rating."
AT&T's performance, particularly in the wireless and fiber segments, appears to be driving a positive outlook from RBC Capital. The raised price target reflects confidence in the company's trajectory and its ability to meet or exceed market expectations.
Investors and market watchers will likely keep an eye on AT&T's stock performance in the wake of this updated price target and continued operational progress as indicated by the analyst's remarks.
In other recent news, AT&T reported a significant rise in net income to $4 billion in its Q4 earnings for 2024, despite a decrease in full-year net income from $14.2 billion in 2023 to $10.7 billion in 2024. The company also entered into an $850 million deal with Reign Capital, involving 74 less utilized properties across the U.S., expected to generate immediate cash and potential future profit from property redevelopment. Analysts have provided varied assessments of AT&T, with Scotiabank (TSX:BNS) raising its stock price target to $26, KeyBanc maintaining a Sector Weight rating, and Bernstein raising the price target to $29 while maintaining an Outperform rating. Raymond (NSE:RYMD) James also maintained a Strong Buy rating for AT&T. However, last year, AT&T experienced a significant security breach, resulting in the exposure of confidential FBI data. These are some of the recent developments for AT&T.
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