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Investing.com - TD Cowen has raised its price target on AT&T (NYSE:T) stock to $32.00 from $30.00 while maintaining a Hold rating following the telecom giant’s second-quarter 2025 results.
The telecommunications company reported better-than-expected revenue, primarily driven by equipment sales, and exceeded EBITDA forecasts, with strength coming mainly from its wireline business. AT&T also benefited from tax savings that contributed to its financial performance.
The company posted higher-than-anticipated phone subscriber additions during the quarter, demonstrating continued customer acquisition despite competitive pressures in the mobile market.
Despite these positive results, AT&T reduced its Mobile EBITDA guidance for the remainder of the year, citing an "actively competitive environment" in the telecommunications sector. This guidance reduction reflects ongoing competitive challenges facing the company.
TD Cowen noted that AT&T appears particularly vulnerable to the current competitive climate, though management has expressed hope that competitive intensity will ease in the future.
In other recent news, AT&T reported its second-quarter 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $0.54, slightly above the anticipated $0.53. The company also exceeded revenue forecasts, posting $30.8 billion compared to the expected $30.45 billion. Wolfe Research raised its price target for AT&T from $32 to $33, maintaining an Outperform rating, citing the company’s shift from legacy businesses to growth areas like fiber and mobile services. Evercore ISI also increased its price target for AT&T from $27 to $28, while keeping an "In Line" rating, noting the company’s successful execution of its 5G wireless and fiber strategy. KeyBanc Capital Markets maintained a Sector Weight rating on AT&T, highlighting the company’s fiber strategy and tax savings. AT&T’s broadband and postpaid phone net additions exceeded expectations, although mobility profitability was impacted by higher equipment costs and marketing expenses. These developments reflect AT&T’s ongoing efforts to transition towards more profitable segments and streamline its operations.
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