AT&T's stock has surged over 50% from its all-time lows, with technical analysis indicating strong bullish momentum and potential for further gains. Daily, weekly, and monthly moving averages show increasing bullish momentum, despite some near-term resistance and pullbacks. Key indicators like MACD and RSI confirm the uptrend, suggesting that the current rally is more sustainable than previous bear rallies.
Citi analysts led by Michael Rollins are upbeat on AT&T's revenue growth, Ebitda growth, and free-cash-flow generation.
Inflation has been quite a thorn in the side of retirees or semi-retirees who depend on a fixed income.
I previously rated AT&T a strong buy due to their disciplined strategy, industry tailwinds, and a DCF price target of $26, indicating 46% upside. AT&T's strategic focus on core businesses, including the DirectTV sale, positions them well for the bundling trend, but recent price gains lower potential returns. I reaffirm my DCF price target of $26 but downgrade AT&T to a buy due to reduced margin of safety and potential return.
AT&T's return to being a telecom after the Warner spin-off was an important step, but it's not over yet. AT&T's $130B debt and competition in telecom and ISP markets limit flexibility and growth potential, despite strong market share. Dividend growth is possible with a low payout ratio and buybacks, but debt repayment and reinvestment needs constrain significant increases.
AT&T Inc (T, Financial) shares are currently priced at $21.87, reflecting a modest decline of 0.21%. This minor movement in the stock price is a typical fluctuation within the broader context of AT&T's recent strategic decisions and market dynamics.
I have been bullish on T since late 2023. T recently decided to divest its DirecTV segment. This move creates another potent positive catalyst for my bull thesis.
Earnings later this month will be a crucial day for determining if AT&T Inc. stock's rally continues. Strong free cash flow is key to ensuring dividend security, and could there be a raise in store? With a sub-50% payout ratio expected, with strategic moves in the works, the company's significant debt burden is in focus.
The telecom giant will sell its 70% stake in DIRECTV, marking the end of a painful and costly era.
Concerns about the sustainability of the company's dividend are fading fast.
We previously shifted our stance on AT&T to neutral due to a balanced risk-reward. The sale of DirecTV, despite a significant loss, aids AT&T's deleveraging and refocuses on its core business. AT&T offers an attractive earnings yield of 10% and free cash flow yield of 12%, but faces bigger risks in 2025.