AT&T plans to invest $2 billion over the next three years as it looks to bridge the digital divide in the US. The investment will go towards expanding the company’s affordable broadband through inexpensive low-cost offers and emergency broadband. The investment builds on a $1 billion contribution over the last three years that has helped support the most under-privileged communities.
By offering affordable broadband, AT&T (T) hopes to make it easy for millions of Americans to access educational resources and economic opportunities. The company is already offering discounted wireless solutions to more than 135,000 schools, colleges, and universities, allowing remote learning to progress with ease.
The $10 a month or less internet service does not come with any contract or installation fee and includes in-home Wi-Fi. On the other hand, the Emergency Broadband Benefit, which comes with a subsidy of up to $50 a month, allows eligible customers to reduce their monthly broadband costs.
“AT&T is investing in and expanding the reach of our broadband networks while also advocating for effective and sustainable public policies that help close this country’s digital divide,” said John Stankey, CEO, AT&T.
AT&T shares are up about 3% year to date after a 26% slide in 2020. (See AT&T stock analysis on TipRanks).
In March, Tigress Financial’s analyst Ivan Feinseth reiterated a Buy rating on the stock. According to the analyst, AT&T’s portfolio of subscription businesses continues to drive strong cash flow expected to sustain the dividend program.
“AT&T remains committed to investing in strategic growth initiatives together with ongoing debt reduction. It positions the company to create greater shareholder value,” added the analyst.
Wall Street has a Moderate Buy rating on AT&T stock, with five analysts rating it as a Buy, seven a Hold, and one as a Sell. The average analyst price target at $31.33 implies 5.38% upside potential to current levels.
Similarly, AT&T scores 7 out of 10 on the TipRanks’ Smart Score tool, implying that the stock is expected to perform in line with market averages.