AT&T stock target raised to $29 by TD Cowen on strong adds

On Tuesday, TD Cowen adjusted its outlook on AT&T shares (NYSE:T), increasing the price target to $29.00 from the previous $26.00, while retaining a Hold rating on the stock. The revision reflects a positive response to AT&T’s recent performance and market movements.

AT&T had a notable fourth quarter in 2024, with significant additions in both phone subscriptions and Fiber-to-the-Home (FTTH) services. The company’s financial results for the quarter were a mixed bag, but the growth in subscriber numbers was a highlight. The long-term targets of the company were reaffirmed, aligning with the guidance for 2025 that was largely anticipated.

Following the announcement of these results, AT&T’s shares experienced a 6% increase. Analysts attribute this rise to the company’s solid subscriber Key Performance Indicators (KPIs), optimistic discussions around tax policy, and a shift in investor interest towards AI and perceived safer assets.

There were no substantial updates from AT&T’s Analyst Day, yet the company’s Free Cash Flow (FCF) target for 2026 is considered ambitious, expected to benefit from working capital assistance. The analyst noted that tax policies are likely to provide significant support to the company.

AT&T’s current dividend yield remains appealing, trading at a 213 basis point premium compared to its competitor Verizon (NYSE:VZ). This aspect of AT&T’s investment profile continues to attract attention in the market.

In other recent news, AT&T has been the center of attention in the financial world due to its Q4 earnings for 2024. The company reported a significant rise in net income to $4 billion, despite a decrease in full-year net income from $14.2 billion in 2023 to $10.7 billion in 2024. AT&T also entered into an $850 million deal with Reign Capital, involving 74 less utilized properties across the U.S., expected to generate immediate cash and potential future profit from property redevelopment.

Analysts from various firms have provided their assessments of AT&T. RBC Capital Markets raised the price target to $27 and maintained an Outperform rating, while Scotiabank (TSX:BNS) increased the price target to $26, also maintaining an Outperform rating. KeyBanc Capital Markets kept a Sector Weight rating, Bernstein’s SocGen Group raised the price target to $29 and maintained an Outperform rating, and Raymond (NSE:RYMD) James maintained a Strong Buy rating with a $28 target.

However, AT&T faced a significant security breach last year, resulting in the exposure of confidential FBI data. These are some of the recent developments for AT&T.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.