On Wednesday, BofA Securities maintained a Buy rating on AT&T (NYSE:T) with a steady price target of $28.00. The firm's updated forecasts for AT&T take into account the recent investor day remarks and discussions from industry conferences during the quarter. AT&T has consistently reaffirmed its full-year guidance, aiming for a free cash flow around the midpoint of its projected $17-18 billion range and an adjusted earnings per share (EPS) between $2.20 and $2.25, which includes contributions from DirecTV.
BofA Securities anticipates that AT&T will deliver results that align with its guidance. The company is expected to stay on course to achieve its leverage target by mid-2025. Additionally, the initiation of a share buyback program is projected to positively influence adjusted EPS and free cash flow (FCF) per share growth. The analyst's statement underscores the anticipated solid performance and strategic financial goals of AT&T.
The report includes a detailed summary of the estimate changes in Exhibit 1 on page 3 of the analyst's notes, which notably excludes DirecTV to match the future guidance that AT&T will provide. This exclusion aligns the analysis with the company's forthcoming financial reporting structure.
AT&T's reiteration of its full-year financial outlook signals confidence in meeting its key financial targets. The company's focus on hitting its leverage target and the potential share buyback program are strategies expected to support its financial growth and provide value to shareholders.
The telecom giant's commitment to its full-year guidance, despite the changing industry landscape, reflects its strategic approach to financial management. AT&T's efforts to align its reporting with future guidance, excluding DirecTV, demonstrates a transparent and forward-looking approach to its financial communications.
In other recent news, AT&T has been a focus of several financial analysts' adjustments.
Bernstein initiated coverage on AT&T with an Outperform rating, highlighting the company's return to its core competencies. The firm foresees AT&T's mobility services revenue growing by more than 3% in the foreseeable future, driven by a combination of pricing and line growth. AT&T's recent earnings report revealed total revenues of $29 billion and a 6% EBITDA growth in its Mobility segment.
Simultaneously, the Supreme Court's decision not to hear an appeal contesting a New York law mandating broadband rate caps for low-income households has impacted AT&T. The decision implies that states can regulate broadband pricing under current Title 1 classification, a development viewed as a setback by the telecom industry.
Deutsche Bank (ETR:DBKGn), JPMorgan (NYSE:JPM), and Citi have all raised their price targets for AT&T shares to $28. Deutsche Bank maintains a Buy rating, reflecting a positive view of AT&T's strategic plan, execution, and positioning within the telecommunications industry. JPMorgan maintains an Overweight rating, following the company's Investor Day, where AT&T presented an improved multiyear service revenue and EBITDA guidance. Citi reiterated a Buy rating, based on the company's fiber expansion and growth strategies.
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