On Thursday, AT&T (NYSE:T) shares saw its price target increased to $19.00 from $18.00 by Evercore ISI, while the firm kept an In Line rating on the stock. The adjustment reflects a positive outlook on the company's future subscriber growth, especially in the context of the upcoming launch of a new AI iPhone.
The firm projects a significant uptick in AT&T's postpaid phone net additions for the third and fourth quarters of the year. Estimates have been raised from 260,000 and 381,000 to 400,000 and 552,000 respectively. These figures surpass the pre-release consensus, which anticipated 337,000 in the third quarter and 409,000 in the fourth quarter.
Looking further ahead, Evercore ISI has also revised its forecasts for 2024 and 2025. The new projections see postpaid phone net additions climbing from 1.25 million and 963,000 to 1.69 million and 1.10 million for each year, respectively. These updated estimates are also higher than the pre-release consensus, which stood at 1.36 million for 2024 and 954,000 for 2025.
The revised estimates and price target suggest a robust growth trajectory for AT&T's subscriber base, despite the uncertainties that may arise in the latter half of the year due to new product launches. The anticipation of increased postpaid phone net additions indicates confidence in the telecom giant's market performance and customer acquisition strategies.
AT&T's stock could potentially see an impact from these revised estimates, as market participants digest the implications of Evercore ISI's updated forecasts and price target. The firm's analysis points to a stronger than expected growth for AT&T in the coming quarters.
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