American Telephone and Telegraph is a global telecommunications company, one of the largest in the United States.
AT&T is on the NYSE under T. It is 117th in the world in terms of capitalization.
Passive investors with a conservative strategy should hold this asset. It has a low beta coefficient and a high dividend yield.
On 11/23/2024, investors are pessimistic about AT&T. The value of the company's assets could drop a lot. Many traders think the company will fail in the future.
Price Today — $22.98 USD.
Price at Q1 of 2024 — $17,60.
Price for next year 2025 — $30.
Long-term price 2025-2030 — $30-$37.
Analyst Rating for AT&T - Buy. Experts expect the stock to move higher. Technical analysis also indicates a high probability of this happening.
The picture for T is unclear. In mid-May, the cost was near the top of the horizontal trend. Traders should consider the following facts:
As we write this report, the volume of transactions is declining due to rising costs;
Moving Averages and MACD are giving buy signals on the weekly chart;
There is a bullish engulfing candlestick pattern on the 1M timeframe.
A $17.62 break-even point is a buy signal. If the cost falls, the support levels are $17.37, $17.30, and $16.91.
AT&T faces challenges in 2024. It has debt and high interest rates. The company still needs to invest in new technologies. Edraw says the company didn't invest much in the past.
Other risks include competition. To stay ahead, you need to offer flexible pricing and advanced services.
Analysts think 2024 will be the best year yet. After a long drop, costs might start to rise again.
Experts disagree about the future of the company. Some believe the brand and management are strong, while others think the business will be uncompetitive in the long term.
If the stock rises 30% in five years, it would be worth investing in. The dividend yield makes it an attractive option to hold.
If the company collapses and leaves the stock exchange, the stock value will drop. In moderate options, the cost is close to the current one. But AT&T may become a profitable asset again when it raises dividends.
Wall Street thinks stock values will go up in 2024. They think this will happen because companies will make more money. The 5G investment cycle for AT&T is over. The company's CFO said they will spend less money.
The company is attractive for investors, with a lower P/E multiple than the average for the market. It is 12.89.
Target values of top investment companies:
$21.00 — JP Morgan and Oppenheimer;
$24.00 — Deutsche Bank;
$29.00 — Tigress Financial.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
June |
16.04 |
20.03 |
July |
15.60 |
18.32 |
August |
16.08 |
18.88 |
September |
15.13 |
17.77 |
October |
16.27 |
19.11 |
November |
16.29 |
19.13 |
December |
17.53 |
20.57 |
Source: https://longforecast.com/t-stock
Analysts don't think AT&T will do well in 2025. Its prospects are questionable. Strong cash flow and customer growth will provide temporary support. The company's debt is still holding high. Its size and complex structure make it insufficiently flexible.
Target levels of various platforms for 2025:
$9.99 — WalletInvestor;
$16.91 — Coincodex;
$19.96 — Stockraven;
$21.21— CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
January |
18.18 |
21.34 |
February |
18.64 |
21.88 |
March |
19.10 |
22.42 |
April |
19.60 |
23.00 |
May |
19.76 |
23.20 |
June |
20.30 |
23.84 |
July |
22.07 |
27.41 |
August |
23.41 |
27.49 |
September |
24.27 |
28.49 |
October |
26.38 |
31.56 |
November |
26.14 |
30.68 |
December |
25.12 |
29.48 |
Source: https://longforecast.com/t-stock
Some experts think AT&T will face new challenges in the future. They think this will happen as early as 2026. The proposed scenarios do not promise higher values in 2025. The most pessimistic of them allow for smaller ones:
$5.388 — WalletInvestor;
$16.53 — Coincodex;
$22.14 — Stockraven;
$23.35— CoinPriceForecast.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
January |
26.88 |
31.56 |
February |
28.36 |
33.30 |
March |
28.86 |
33.88 |
April |
30.17 |
35.41 |
May |
32.79 |
39.90 |
June |
29.72 |
36.94 |
July |
25.26 |
32.30 |
August |
24.43 |
28.67 |
September |
25.17 |
29.55 |
October |
23.69 |
27.81 |
November |
25.47 |
29.89 |
December |
25.49 |
29.93 |
Source: https://longforecast.com/t-stock
Analysts think the company's capitalization will stay the same or go down. This means the company will have to deal with some risks. First, competitors will gain an advantage. Second, the market will become saturated.
Possible AT&T stock values in 2027:
$0.779 — WalletInvestor;
$16.16 — Coincodex;
$24.11 — Stockraven;
$26.99 — CoinPriceForecast.
Excessive pessimism is unwarranted, BeatMarket experts believe. We are convinced that the company will be able to maintain its position in 2024. And additional free cash flow will be generated by completing the transition to 5G.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
January |
27.43 |
32.19 |
February |
28.45 |
33.39 |
March |
29.16 |
34.24 |
April |
29.88 |
35.08 |
May |
26.79 |
32.48 |
June |
27.01 |
31.71 |
July |
24.02 |
29.36 |
August |
26.11 |
32.43 |
September |
27.31 |
32.05 |
October |
28.30 |
33.22 |
November |
30.76 |
36.80 |
December |
30.48 |
35.78 |
Source: https://longforecast.com/t-stock
There are also negative scenarios for 2028. WalletInvestor says AT&T stock would be worth less than a penny. Such pessimism is not shared by other experts.
Value of the asset in 2028:
$15.80 — Coincodex;
$24.77 — Stockraven;
$29.90 — CoinPriceForecast.
BeatMarket analysts believe that costs will be above the level of 2024. The stock analysis service indicates that EPS in 2028 may reach $2.66 against $1.97 in 2023. Revenues, according to the platform's experts, will be in the range of $124.5 billion to $144.1 billion.
Month |
Minimum expected price, $ |
Maximum expected price, $ |
January |
29.28 |
34.38 |
February |
31.34 |
36.80 |
March |
33.07 |
38.83 |
April |
33.65 |
39.51 |
May |
35.18 |
41.30 |
June |
38.24 |
46.53 |
July |
35.17 |
42.14 |
August |
31.14 |
35.91 |
September |
30.98 |
32.16 |
October |
29.85 |
31.54 |
November |
27.59 |
29.99 |
December |
25.63 |
27.13 |
Analysts are optimistic about AT&T's future. They say the market is undervalued:
the company is trading at 2003 prices;
the P/E multiple is below the industry average (according to investing.com data);
value below fair one (calculated using Peter Lynch's formula).
There are other advantages. Experts call the decision to focus on fiber optics a visionary one. It will make the capital structure more sustainable. When AT&T reduces its debt ratio to 2.5, it will raise its investment attractiveness.
Bears thinks it's hard for the company to adapt to new technologies. Its business model is easy to copy, and its growth is limited.
Long-term forecasting services predict that the market will double in value over the next 10 years. Even the lowest prediction shows a 2-fold increase. If you factor in dividend premium, the bottom line yield could be higher than the S&P 500's historical results.
$38.21 — Stockraven;
$44.66 — CoinPriceForecast.
The sample is small. Online services predicting falling values don't publish data for 10 years or more.
Experts think AT&T will be worth more in 2030 than it is now. Bears think it will be worth as much as it was in mid-2023.
$15.10 — Coincodex;
$30.04 — Stockraven;
$37.29 — CoinPriceForecast.
Since 2016, AT&T has been in a bad trend. But BeatMarket analysts still think the company will hold the same positions. We think the rebound will last a long time.
Extrapolating past data gives different results. It's hard to justify any of the proposed scenarios with facts so far in the future. The value of the asset will be affected by many unknown factors.
Experts say the target levels are:
$8.86 — Stockscan;
$48.79 — Stockraven.
BeatMarket analysts are optimistic. There is no reason to believe that AT&T will lose the competition. The quotes will likely be lower in 15 years.
The 2050 scenarios are optimistic:
$27.85 — Stockscan;
$68.32 — Stockraven.
The pessimistic option is a 60% rise over 25 years. Even with dividends, this asset is not recommended for purchase.
The optimistic scenario yields a 4x capital appreciation. When AT&T returns to its dividend strategy, its stock could return above the S&P 500.
AT&T Inc. started in 1877 as Bell Telephone Co. Today, it is worth $124.54 billion. The business is divided into several major areas. The main thing it does is communicate. It generates 75% of revenue. This includes:
cellular communications;
telecom services;
broadband access;
server and IT services.
The company operates in Latin America and Europe, but most of its revenue comes from the US.
Investors are interested in the high dividend yield. Over the past year, $1.11 has been paid out, equivalent to 6.43%. This is above the average of S&P 500 companies.
1999-2000
After a long period of strong growth, the stock value reached a record high of over $40. After a brief recovery, the record was not broken. This was followed by a long period of decline.
2016
After a long sideways trend, a bullish trend started. The stock barely beat $30 and fell again into a descending channel.
2019-2023
In 2019, the cost reached $30. It then fell for a long time. It reached its lowest point in July 2023. After that, it began to rise again.
The stock market is affected by things like the Fed rate, GDP, and industrial production. When interest rates are high, AT&T stocks lose value.
Capitalization depends on revenue, earnings, and profit margins. When AT&T makes more money, its value goes up. When stocks perform poorly, investors sell. The cost falls.
When customers leave, companies lose money. A company's market share and financial indicators affect its stock value.
Analysts' average target value for the next year is $20.08. Highest is $29. Lowest is $11.
Valueinvesting says the fair value is $47.48. This is based on Peter Lynch's formula.
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