Analyst Michael Funk of Bank of America Securities maintained a Buy rating on AT&T, retaining the price target of $34.00.
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Michael Funk has given his Buy rating due to a combination of factors including AT&T’s strong financial performance and strategic initiatives. The company exceeded expectations in adjusted EBITDA and free cash flow, while also achieving significant post-paid phone net additions, indicating a competitive edge in the market. These results suggest a robust switcher environment, potentially posing a downside risk for competitors like Verizon.
Additionally, AT&T’s guidance for 2025 remains optimistic, with expectations of low single-digit service revenue growth and at least 3% growth in adjusted EBITDA. The company’s strategic focus on wireless service revenue growth and its plans for mergers and acquisitions, such as the anticipated LUMN deal, further support the positive outlook. These factors, combined with stable growth, stock buybacks, and a solid dividend yield, underpin Funk’s Buy rating.
In another report released on October 16, Wells Fargo also maintained a Buy rating on the stock with a $29.00 price target.