Buy Rating Affirmed for AT&T on Strong Growth and Profitability Prospects

Tigress Financial analyst Ivan Feinseth has reiterated their bullish stance on T stock, giving a Buy rating yesterday.

Ivan Feinseth has given his Buy rating due to a combination of factors that indicate AT&T’s promising trajectory in terms of growth and profitability. The primary reason for this optimistic outlook is the company’s substantial investment in building a diversified, high-speed connectivity network. This strategic move is expected to catalyze a resurgence of long-term revenue growth, enhanced cash flow generation, and improved profitability margins. With a 12-month target price of $29, the ongoing development of this advanced network infrastructure is seen as a pivotal element in AT&T’s future success.

Furthermore, AT&T’s rollout and adoption of 5G and fiber network technologies are key drivers for expanding its subscriber base and bolstering business performance. The company’s potential to increasingly utilize its 5G and high-speed fiber network to not only attract more subscribers but also to offer value-added services is a vital aspect of its growth strategy. Additionally, AT&T’s effective capital allocation, marked by investments in strategic growth areas and debt reduction, coupled with a disciplined cash flow-based dividend policy, is anticipated to yield significant returns for shareholders in the foreseeable future.

In another report released yesterday, Barclays also upgraded the stock to a Buy with a $20.00 price target.

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AT&T (T) Company Description:

AT&T, Inc. is a holding company, which engages in the provision of telecommunications media and technology service. It operates through the following segments: Communications, WarnerMedia, Latin America and Xandr. The Communications segment provides services to businesses and consumers located in the U.S., or in U.S. territories, and businesses globally. The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content over various physical and digital formats. The Latin America segment provides entertainment and wireless services outside of the U.S. The Xandar segment provides advertising services. The company was founded in 1983 and is headquartered in Dallas, TX.