On Thursday, RBC Capital adjusted its outlook on AT&T (NYSE:T) shares, increasing the company's price target to $19.00 from the previous $18.00, while keeping a Sector Perform rating on the stock.
The firm's decision followed AT&T's recent financial results, which showed second-quarter revenue and EBITDA aligning with market expectations. Notably, the company's free cash flow surpassed predictions due to advantageous capital expenditure timing.
AT&T's management has confirmed that it will uphold its full-year financial guidance. This announcement comes as the telecom giant reported a stronger-than-anticipated performance in postpaid phone net additions, a key metric for the industry. This growth is attributed to effective churn management and the appeal of bundled offerings that include fiber services.
The revised price target reflects the positive effects of these developments on RBC Capital's financial model for AT&T. The analyst noted that the adjustments were made to account for the flow-through impacts observed in their assessment. AT&T's operational advances, particularly in the postpaid phone segment, played a significant role in informing the updated price target.
The telecommunications industry is closely monitored for indicators of growth and stability, as it is integral to both consumer and business sectors. AT&T's steady performance and ability to meet consensus forecasts provide a snapshot of the company's current financial health and operational effectiveness.
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