On Thursday, Deutsche Bank (ETR:DBKGn) maintained a Buy rating on shares of AT&T (NYSE:NYSE:T) and increased the price target to $28 from $27. The adjustment reflects a positive view of the company's strategic plan and execution, as well as its positioning within the telecommunications industry.
According to Deutsche Bank, AT&T's management has effectively continued the strategy seen in 2023 and 2024, which has been a point of contention regarding the company's sustainability.
The analyst noted that AT&T's presentation reinforced the belief that the company is well-placed in the market, particularly with its plans to expand its Fiber-to-the-Premises (FTTP) footprint to over 50 million premises in the United States within the next five years, up from approximately 29 million at the end of 2024.
The announcement of AT&T's share repurchase program was also highlighted, with $20 billion allocated for buybacks from 2025 through 2027, signaling the company's confidence in its management and long-term strategy.
The price target increase to $28 is based on slightly higher EBITDA and Free Cash Flow (FCF) estimates for 2027 and beyond, which align with the company's three-year guidance. The new price target implies a 6.5% estimated UFCF yield for 2025 and a 6.8% yield for 2026.
AT&T's current trajectory and the planned share repurchases are seen as affirmations of the company's commitment to its growth and operational goals over the coming years.
In other recent news, AT&T has been the focus of several analyst adjustments. JPMorgan (NYSE:JPM) raised their price target for AT&T shares to $28, maintaining an Overweight rating, following the company's Investor Day. The telecom giant presented an improved multiyear service revenue and EBITDA guidance, with expectations to deliver in excess of $40 billion to shareholders by 2027.
Citi also upgraded AT&T's price target to $28, reiterating a Buy rating, based on the company's fiber expansion and growth strategies. Meanwhile, New Street Research upgraded AT&T shares from Neutral to Buy, citing the company's strong guidance and share repurchases.
Furthermore, AT&T's recent activities include a $1 billion deal with Corning (NYSE:GLW) to expand its fiber network and a $1.018 billion purchase of spectrum assets from UScellular. These strategic moves are expected to enhance AT&T's broadband and mobile market shares.
AT&T's recent earnings report revealed total revenues of $29 billion and a 6% EBITDA growth in its Mobility segment. The company also added 403,000 postpaid phone subscribers. These financial results and strategic developments have led to adjustments in analyst price targets from firms such as TD Cowen and Oppenheimer.
Finally, a survey conducted by RBC revealed that AT&T's mobility customers place high value on network quality and are inclined to bundle their services with broadband options. These are all recent developments that reflect the ongoing activities and strategies of AT&T.
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