AT&T (NYSE: T) shares rose almost 2% on Thursday after JPMorgan upgraded the stock, citing an attractive valuation.
In a note issued on Thursday, JPMorgan upgraded AT&T (T) shares from Neutral to Overweight, unveiling a new stock price target of $21, up from $18 per share. The move comes as analysts highlight the promising future of AT&T in the tech and communication industry.
Analysts at JPMorgan, in a note to investors, underscored the mobility growth of AT&T, underpinned by solid fiber broadband support. The company’s steady free cash flow and attractive valuation were the primary factors behind the positive rating.
Analysts stated that the company has consistently performed well in its wireless and broadband sectors. They anticipate sustained growth in both segments, especially in broadband, driven by ongoing fiber expansion and emerging opportunities in current and new markets.
“AT&T is through its elevated capital investment spend for 5G and we expect steady FCF generation to support dividend payments and reduce debt.”
JPMorgan has underscored AT&T’s commitment to execution and enhanced stability in its operations, citing the streamlined plans and regular promotional offerings as evidence.
Meanwhile, analysts suggest that AT&T is successfully handling postpaid phone churn and limiting the decline in subscriber share.
Furthermore, analysts note that AT&T is advancing in broadband, with 26 million fiber locations already achieved. They anticipate the company will achieve its goal of surpassing 30 million locations by the end of 2025.
AT&T (NYSE: T) Stock Price Action
T stock inclined 1.98% on Thursday. The traders had exchanged hands with 68,457,855 (68.45 million) shares compared to the average daily trading volume of 37.80 million.
