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On Tuesday, Bernstein SocGen Group indicated a positive outlook for AT&T (NYSE:T) shares, increasing the price target from $29.00 to $30.00 while maintaining an Outperform rating. The firm’s analyst, Laurent Yoon, highlighted AT&T’s success in growing its subscriber base through its fiber-led bundle strategy and effective churn management, despite the company’s premium pricing relative to competitors.
AT&T has been able to sustain net additions to its subscriber base, a notable achievement given the context of network parity and the struggles faced by its premium peer, Verizon (NYSE:VZ), in maintaining a steady inflow of net adds. Yoon pointed out that without AT&T’s bundling strategy and churn management efforts, the company’s Q1 net additions would have been approximately flat.
The analyst emphasized that the continued expansion of AT&T’s fiber offerings and disciplined approach to churn management are likely to remain crucial factors in driving the company’s positive net additions. The increase in the price target to $30 reflects the anticipated benefits from the higher postpaid net adds resulting from AT&T’s fiber-led bundles.
AT&T’s premium marketing position has not hindered its growth, as demonstrated by the company’s ability to attract and retain customers effectively. The updated price target from Bernstein SocGen Group reflects confidence in AT&T’s strategic initiatives and their potential to contribute to the company’s financial performance.
In other recent news, AT&T Inc. has addressed its shareholders regarding an unsolicited mini-tender offer from TRC Capital Investment Corporation. This offer seeks to acquire up to 4 million shares of AT&T’s common stock at a price below the current market value. AT&T has advised its shareholders to reject this offer, emphasizing that it undervalues the shares and is not affiliated with the company. Meanwhile, AT&T’s Chief Operating Officer, Jeff McElfresh, is set to discuss the company’s growth strategy at the upcoming J.P. Morgan Global Technology, Media and Communications Conference. The company has reiterated its financial guidance for the full year 2025, projecting significant capital investments and a robust share repurchase program.
In the realm of analyst ratings, UBS has maintained a Buy rating on AT&T, with a price target of $30. UBS analyst John Hodulik noted a 3.5% increase in AT&T’s EBITDA and highlighted the company’s defensive market position. Similarly, Bernstein analysts have kept an Outperform rating for AT&T, setting a price target of $29. They pointed to AT&T’s strong subscriber growth and increased service bundling as positive factors. However, Bernstein also acknowledged potential macroeconomic challenges that could impact the company. These recent developments provide a comprehensive look at AT&T’s current activities and the perspectives of analysts monitoring the company’s performance.
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