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Investing.com - Bernstein SocGen Group raised its price target on AT&T (NYSE:T) to $32.00 from $31.00 on Thursday, while maintaining an Outperform rating on the telecommunications company’s stock.
The price target increase follows AT&T’s recent move to acquire a substantial block of low and mid-band spectrum from Echostar for $23 billion, representing approximately $1.5 per MHz-pop.
Bernstein SocGen noted that while the spectrum acquisition "certainly isn’t cheap," it was "necessary to secure a sizable block optimal for T, given its current mid-band portfolio."
The firm highlighted that AT&T’s existing mid-band portfolio already includes 43 MHz of 3.45 GHz band spectrum, making this new acquisition a strategic addition to its holdings.
The research firm characterized AT&T’s spectrum purchase as a "preemptive move," suggesting the telecommunications giant is positioning itself strategically in the competitive wireless market.
In other recent news, AT&T has announced a significant acquisition, agreeing to purchase wireless spectrum licenses from EchoStar for approximately $23 billion. This acquisition includes 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum, covering over 400 markets across the United States. The deal is part of AT&T’s strategy to enhance its communications infrastructure and strengthen its connectivity leadership. Following this announcement, S&P Global Ratings revised AT&T’s outlook to stable from positive, primarily due to an expected increase in leverage resulting from the acquisition.
In another development, Goldman Sachs has upgraded AT&T stock to a Buy rating, highlighting strong growth prospects in fiber broadband. The company reported 18% fiber revenue growth in 2024, with fiber connections increasing by 12% and average revenue per user (ARPU) rising by 4%. Goldman Sachs analyst Michael Ng noted AT&T’s guidance for mid-to-high teens fiber broadband growth for 2025 and mid-teens growth annually through 2027. Meanwhile, T-Mobile and Starlink have shown interest in acquiring spectrum controlled by EchoStar, following AT&T’s spectrum deal. These recent developments reflect AT&T’s strategic moves to expand its market presence and improve its service offerings.
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