Despite AT & T ‘s stock trailing the overall market, analysts from JPMorgan and Wells Fargo think the storied company is well positioned for long-term growth. “[W]e see AT & T’s current valuation as attractive given the company’s growth profile, cost cutting efforts, stable (and profitable) wireless trends, and ramping consumer fiber business,” JPMorgan analyst Sebastiano Petti wrote in a recent note. AT & T dates back to 1876 when Alexander Graham Bell invented the telephone and then founded Bell Telephone Company a year later. Today, AT & T is the fourth-largest telecommunications company in the world. Both JPMorgan and Wells Fargo think the company can continue to grow its wireless business with a steady stream of new customers. “AT & T is through its elevated capital investment spend for 5G and we expect steady [free cash flow] generation to support dividend payments and reduce debt,” Petti said. His $21 per share price target implies more than 21% upside from Wednesday’s $17.33 close. Shares of the telecommunications company have inched up less than 3% in 2024, while the S & P 500 has climbed 11%. The stock’s dividend yield is 6.41%. T .SPX YTD mountain AT & T stock. Part of AT & T’s lackluster performance in 2024 can be attributed to a data leak in March that saw millions of customers’ info published on the dark web. Still, the event didn’t cause any changes to its financial outlook. In April, the company surpassed Wall Street’s first-quarter earnings estimates but slightly undershot revenue forecasts, according to FactSet. AT & T reiterated its full-year forecast, which calls for adjusted earnings of between $2.15 and $2.25 per share. “T’s wireless and consumer wireline businesses continue to be bright spots, more than offsetting the recent network outage/cyberattack noise and business wireline headwinds,” Wells Fargo analyst Eric Luebchow said in late April. “We view risk/reward as very favorable with guidance reiterated.” The analyst maintains an overweight rating on AT & T stock with a $20 per share price target, implying 15% upside moving forward. AT & T said its wireless service revenue growth will rise around 3% this year, while free cash flow should be between $17 billion and $18 billion in 2024. In the first quarter, the company said it reported the lowest level of postpaid customer churn for that time.
