AT&T Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for AT&T Inc. (T).
Give me a comprehensive price target analysis for AT&T Inc. (T).
Price Target Analysis for AT&T Inc. (T)
Executive Summary
AT&T presents a compelling investment opportunity with a current price around $29.44. The stock exhibits strong support at the $21.87 level, with medium and high price targets at $31.00 and $34.00 respectively. The company's valuation metrics are attractive, with a P/E ratio of approximately 16.8, and a dividend yield of 3.79%. Technical indicators showing RSI levels in the mid-60s suggest moderate upward momentum, supported by stable moving averages. Given the analyst consensus and the positive earnings trends, AT&T appears poised for potential appreciation over the medium term.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | $210.5B |
| Enterprise Value | $369.0B |
| Trailing P/E | 16.8 |
| Forward P/E | 13.1 |
| Price-to-Book | 2.00 |
| Return on Equity | 11.5% |
| Debt-to-Equity | 123.2 |
| Total Cash | $10.5B |
| Total Debt | $152.0B |
| Dividend Yield | 3.79% |
| 5-Year Avg Dividend Yield | 6.79% |
The valuation metrics indicate a reasonably valued stock with healthy profitability margins and a manageable debt position relative to cash holdings.
Earnings Analysis
- Recent Earnings Performance: EBITDA remains robust, with slight fluctuations, averaging around $13 billion. Net income from continuing operations is stable at approximately $4.35 billion recently.
- EPS Trends: The EPS shows slight short-term declines but maintains an overall upward trend over the year (+1Y EPS: 2.22), signaling resilient earnings growth.
- EPS Revisions: Recent upward revisions in EPS by analysts (4 upward over the last 7 days) suggest growing confidence.
- Earnings Quality: Consistent revenue and EBITDA figures support earnings sustainability, though the company's high debt levels warrant caution.
Technical Analysis
- Price action is steady around the recent close of $29.44.
- The 50-day moving average (~27.5) supports the current price, indicating a bullish trend.
- RSI (~83.1) signals overbought conditions in the short term but could continue with strong momentum.
- MACD remains positive, confirming upward price momentum.
Analyst Consensus & Price Targets
| Target Type | Price | Number of Analysts |
|---|---|---|
| Low | $21.87 | - |
| Median | $31.00 | 25 |
| High | $34.00 | - |
The median target of $31.00 suggests modest upside potential from the current price, with the high target at $34.00 indicating favorable long-term prospects.
Price Target Analysis
- Short-Term (3 months): The stock may experience consolidation around current levels (~$29.44). Support is robust at $21.87, with strengths in earnings momentum possibly leading toward the median target of $31.00 if positive catalysts emerge.
- Mid-Term (12 months): Potential for reaching the median target ($31.00) driven by earnings growth, dividend income, and technical momentum. If the stock sustains the bullish trend indicated by technical signals and earnings revisals, it could challenge the high target of $34.00.
- Long-Term (3+ years): Fundamental valuation and robust cash flow support a valuation around $34.00 or higher, assuming the company maintains growth and manages debt levels.
Key Risks & Opportunities
- Risks: High debt levels may constrain growth; macroeconomic factors affecting telecom and media sectors; potential regulatory challenges.
- Opportunities: Dividend reinvestment appeal; steady cash flow supporting share buybacks or debt reduction; potential upside from 5G expansion and new revenue streams.
Investment Recommendation
- Rating: Hold to Slight Buy
- Time Horizon: 12-24 months
- Expected Return: Approximately 5-15%, depending on sector conditions and earnings growth.
The drawn support/resistance levels reflect the following key price points:
- Support (Low Target): $21.87
- Median Target: $31.00
- High Target: $34.00
These levels can serve as strategic entry/exit points based on market conditions.
Let me know if you'd like me to update or add further insights.