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Investing.com - KeyBanc Capital Markets maintained its Sector Weight rating on AT&T (NYSE:T) following the telecom giant’s second-quarter 2025 results, which exceeded expectations in several key metrics.
AT&T reported better-than-expected broadband net additions and postpaid phone net additions in the quarter despite experiencing higher customer churn. The company’s mobility profitability fell short of projections due to increased equipment costs and marketing expenses.
KeyBanc analyst Brandon Nispel expressed a more constructive view on AT&T relative to its competitors, highlighting three factors: continued strong performance in mobility, strategic competitive advantages in fiber and convergence offerings, and ongoing cost reduction initiatives aimed at eliminating legacy drags on performance.
The analyst noted that tax savings from the Opportunity (SO:FTCE11B) Broadband Benefit (OBBB) program are expected to accelerate AT&T’s fiber network expansion, potentially supporting continued strong mobility performance.
Despite the positive outlook, KeyBanc maintained its Sector Weight rating, with the analyst suggesting that the major portion of stock outperformance may have already occurred and recommending patience for a potential pullback before increasing exposure.
In other recent news, AT&T reported its second-quarter 2025 earnings, surpassing analysts’ expectations with an adjusted earnings per share (EPS) of $0.54 compared to the anticipated $0.53. The company also exceeded revenue forecasts, posting $30.8 billion against the expected $30.45 billion. Despite these positive financial results, the stock experienced a pre-market decline. Wolfe Research raised its price target for AT&T from $32 to $33, maintaining an "Outperform" rating. The firm noted AT&T’s shift from legacy businesses toward growth in fiber and mobile services, projecting a significant reduction in EBITDA contributions from declining sectors by 2028. Additionally, Evercore ISI increased its price target from $27 to $28, maintaining an "In Line" rating. This decision was based on AT&T’s consistent strategy in 5G wireless and fiber, along with effective cost management. These developments reflect confidence in AT&T’s strategic direction and financial performance.
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