Evercore ISI lifts AT&T stock price target to $27 from $25

On Thursday, Evercore ISI analyst Vijay Jayant increased the price target on AT&T stock (NYSE:T) to $27, up from the previous $25, while maintaining an In Line rating. The adjustment follows AT&T’s strong quarterly results, which showcased a healthy increase in wireless and broadband net additions, as well as key financial metrics such as wireless service revenue, EBITDA, and free cash flow (FCF). These positive outcomes were reported even after accounting for certain one-time or timing benefits.

AT&T’s reported results exceeded expectations with postpaid phone net additions outperforming due to a significant 13% year-over-year growth in gross additions, against forecasts that anticipated flat growth. Despite higher churn rates, the company expects churn to stabilize quarter-over-quarter, with a seasonal increase anticipated in the second half of the year. The solid trend in net additions is projected to continue into the second quarter.

The company observed higher-than-expected upgrade rates in the first quarter, which are likely to persist following the announcement of reciprocal tariffs earlier in April. These tariffs could potentially impact margins, yet AT&T’s management reaffirmed its forecast for Mobility EBITDA growth at the higher end of the 3-4% range for the year. This optimism is partly due to efforts to improve average revenue per user (ARPU) through adjustments to autopay discounts and accelerated cost reduction initiatives.

Consumer broadband, particularly across fiber and fixed wireless access (FWA), continues to demonstrate robust trends, which appear sustainable amid ongoing market share gains and an expanding service footprint. AT&T’s consistent execution of its strategy positions the company to commence share buybacks in the second quarter of 2025.

While Evercore ISI acknowledges AT&T’s solid performance and execution, the firm remains on the sidelines due to broader concerns about the wireless industry and a comparative preference for competitors like Verizon (NYSE:VZ), which has greater potential for a positive re-rating, and T-Mobile, which offers faster growth albeit at a premium valuation. The new price target of $27 is based on a 6.7x enterprise value/EBITDA and 10.8x price/free cash flow multiple on Evercore ISI’s 2026 forecasts.

In other recent news, AT&T has reported its first-quarter 2025 financial results, revealing a mixed outcome for investors. The company posted earnings per share (EPS) of $0.51, slightly missing the analyst forecast of $0.52, but revenue exceeded expectations at $30.6 billion, surpassing the anticipated $30.39 billion. AT&T’s revenue grew by 2% year-over-year, bolstered by strong postpaid phone net additions and service revenue increases. Free cash flow for the quarter was reported at $3.1 billion, marking a significant year-over-year increase.

JPMorgan has responded to AT&T’s performance by raising the company’s stock price target to $31 from $28 and maintaining an Overweight rating, citing impressive postpaid phone net additions and robust EBITDA growth. The firm remains optimistic about AT&T’s financial outlook, slightly raising the 2025 consolidated EBITDA forecast to $46.19 billion. AT&T has also announced a $10 billion share repurchase program, reinforcing its commitment to returning value to shareholders. The company continues to expand its fiber network, aiming to reach 50 million locations by 2029, and remains confident in meeting its full-year financial targets despite a competitive market environment.

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