Wall Street is optimistic about AT&T, a longstanding blue-chip company, as the new year begins. Wells Fargo identified AT&T as a top telecommunications pick for 2025, with expectations for double-digit earnings per share growth by 2027, largely driven by its fiber-to-the-home broadband expansion. Analyst Eric Luebchow stated that AT&T’s shift towards becoming a dedicated communications provider could yield significant benefits. The company’s recent long-term guidance indicates a projected $40 billion return to shareholders from 2025 to 2027. Trading at seven times its 2025 earnings before interest, taxes, depreciation, and amortization, AT&T is seen as attractively valued, with strong free cash flow supporting further share buybacks beyond the anticipated $20 billion. Additionally, RBC Capital Markets recently upgraded AT&T to an outperform rating, citing potential growth and shareholder returns. Analyst Jonathan Atkin expects substantial cost savings by decommissioning legacy copper lines and believes that the company will add over 500,000 converged households by 2030. He raised the price target for AT&T shares to $26, indicating a projected 15% upside. In 2024, AT&T shares appreciated about 36%, excluding the dividend yield of 4.9%.
