Morgan Stanley Forecasts Strong Price Appreciation for AT&T (NYSE:T) Stock

AT&T (NYSE:T) had its target price lifted by research analysts at Morgan Stanley from $27.00 to $28.00 in a report released on Monday, Benzinga reports. The firm presently has an “overweight” rating on the technology company’s stock. Morgan Stanley’s target price indicates a potential upside of 14.20% from the stock’s previous close.

Other equities research analysts have also recently issued reports about the stock. Argus decreased their price target on shares of AT&T from $33.00 to $30.00 and set a “buy” rating on the stock in a research note on Thursday, July 23rd. Sanford C. Bernstein reissued an “outperform” rating and issued a $25.00 price objective on shares of AT&T in a research report on Monday, July 13th. Weiss Ratings raised shares of AT&T from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, August 3rd. Scotiabank reduced their price objective on shares of AT&T from $31.00 to $29.25 and set a “sector perform” rating on the stock in a research note on Wednesday, July 15th. Finally, The Goldman Sachs Group set a $30.00 target price on shares of AT&T in a research report on Wednesday, July 22nd. Twelve analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $29.25.

AT&T Stock Performance

AT&T stock opened at $24.52 on Monday. AT&T has a fifty-two week low of $19.89 and a fifty-two week high of $29.43. The company has a market capitalization of $168.01 billion, a price-to-earnings ratio of 8.12, a PEG ratio of 1.24 and a beta of 0.25. The stock has a fifty day moving average of $24.95 and a two-hundred day moving average of $24.82. The company has a debt-to-equity ratio of 1.06, a quick ratio of 0.93 and a current ratio of 0.97.

AT&T (NYSE:T) last issued its quarterly earnings data on Wednesday, July 22nd. The technology company reported $0.65 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.59 by $0.06. The business had revenue of $31.56 billion for the quarter, compared to the consensus estimate of $31.80 billion. AT&T had a return on equity of 12.86% and a net margin of 16.94%.The business’s revenue was up 2.3% on a year-over-year basis. During the same period in the prior year, the business earned $0.54 earnings per share. AT&T has set its FY 2026 guidance at 2.250-2.350 EPS. On average, analysts anticipate that AT&T will post 2.33 EPS for the current fiscal year.

Institutional Trading of AT&T

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Andra AP fonden lifted its holdings in shares of AT&T by 1.5% during the 2nd quarter. Andra AP fonden now owns 739,787 shares of the technology company’s stock worth $15,314,000 after acquiring an additional 11,000 shares during the period. State Street Corp grew its holdings in AT&T by 5.8% in the second quarter. State Street Corp now owns 334,273,613 shares of the technology company’s stock valued at $6,919,464,000 after purchasing an additional 18,468,679 shares during the period. Premier Financial Group acquired a new position in AT&T during the second quarter worth approximately $42,000. Security National Bank of SO Dak acquired a new position in AT&T during the second quarter worth approximately $100,000. Finally, Anchor Investment Management LLC raised its stake in AT&T by 5.3% during the second quarter. Anchor Investment Management LLC now owns 42,926 shares of the technology company’s stock worth $889,000 after purchasing an additional 2,174 shares during the period. Hedge funds and other institutional investors own 57.10% of the company’s stock.

Key Headlines Impacting AT&T

Here are the key news stories impacting AT&T this week:

• Positive Sentiment: AT&T signed a multi-year agreement valued at more than $3 billion with Corning to supply fiber and cable for network expansion. The investment is intended to bring faster internet to more customers and address rising data usage tied to broadband, mobile services and artificial-intelligence applications. While the deal implies substantial spending, it could strengthen AT&T’s long-term network capacity and support future revenue growth. AT&T signs over $3 billion fiber deal with Corning
• Positive Sentiment: BNP Paribas upgraded AT&T to Outperform and raised its price target from $26 to $30, citing a more rational wireless competitive environment, reduced handset subsidies and customer acceptance of rate increases. These factors could improve wireless service-revenue growth, average revenue per user and cash flow. Morgan Stanley also maintains an Overweight rating and raised its target to $28. Can AT&T Turn Higher ARPU Into Bigger Cash Flow?
• Neutral Sentiment: Analysts and financial commentators continue to describe AT&T as potentially undervalued after its substantial three-year rebound. Its low earnings multiple and roughly 4% dividend yield may attract income-oriented investors, although the stock’s muted recent performance suggests the market is waiting for stronger evidence of sustained earnings and cash-flow growth. AT&T Stock Looks Undervalued
• Negative Sentiment: Dividend investors have been warned that AT&T’s large network and infrastructure requirements could compete with dividend growth and debt reduction for cash. The more than $3 billion Corning commitment reinforces the need to monitor capital expenditures, leverage and free cash flow before assuming the dividend is a low-risk income opportunity. This Dividend Trap Is Yielding More Than 4%

About AT&T

AT&T Inc (NYSE: T) is a telecommunications company that provides wireless communications, broadband, and related connectivity services. Its offerings include mobile voice and data plans, internet access, fiber broadband, fixed wireless services, and business communications solutions.

The company serves consumers, businesses, government agencies, and other organizations primarily in the United States. AT&T’s business operations include wireless network services, wireline connectivity, fiber-optic internet, voice services, and networking solutions designed to connect locations, devices, and applications.

AT&T traces its history to the Bell System and has operated under its current corporate name since 2005, following the acquisition of AT&T Corp.