AT&T (T) PT Raised to $28 at Deutsche Bank

Deutsche Bank analyst Natthew Niknam raised the price target on AT&T (NYSE: T) to $28.00 (from $27.00) while maintaining a Buy rating.

The analyst comments "The strategy and targets management presented largely represent a continuation of the plan and execution we have seen from AT&T in 2023 and 2024, which we view as positive for the stock since the sustainability of this performance is what the market has questioned all along. Management's presentation also made a convincing case we think that AT&T is uniquely positioned in the industry as it will have the largest FTTP footprint in the US in five years at 50M+ premises (up from ~29M at YE24), combined with owning one of three scaled national wireless networks. The commencement of share repurchases in 2025, with $20B earmarked for buybacks through 2027, further demonstrates the company's confidence in management's ability to execute over this multi-year period. We are raising our PT to $28, from $27, driven by our ~1% higher EBITDA and FCF estimates in 2027+ (our EBITDA estimates for 2025 and 2026 also increase), consistent with management's three-year guidance. Our $28 12-month PT implies a 6.5% 2025E UFCF yield and a 6.8% 2026E UFCF yield."

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