Is AT&T Stock Going to $34? 1 Wall Street Analyst Thinks So.

Source The Motley Fool

AT&T (NYSE: T) stock has been a strong performer, surging 64% over the last year. But Tigress Financial analyst Ivan Feinseth sees more upside following AT&T's first-quarter earnings report.

The analyst recently maintained a buy rating on the shares and raised the firm's price target from $32 to $34, implying 23% upside over the current $27.71 share price. Can investors expect the stock to hit the analyst's price target over the next 12 months?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Is AT&T stock a buy?

AT&T has been outperforming the competition, and that trend continued in the first quarter. It reported 324,000 postpaid phone net adds, which refers to the monthly bills customers pay to use their phone. It also reported a healthy postpaid churn rate of 0.83%, indicating relatively low cancellations.

It is having success cross-selling its fiber internet service, with over 40% of AT&T Fiber households also using the company's wireless service. Overall, revenue from fiber broadband grew 19% year over year in Q1.

Competition picked up in the quarter, but AT&T's churn rate shows it is not having a problem signing up customers right now. Management credits the momentum to a new commitment to delivering quality service and attractive offers, which it refers to as the AT&T Guarantee. This reflects the investment the company has made in its fiber buildout and upgrading its network connectivity.

If AT&T continues to report solid financial results like Q1, the stock could head toward the analyst's price target this year. But there are risks to watch for, such as the possibility of an economic downturn and a sudden shift in the competitive landscape if other wireless service providers get more aggressive with promotional offers.

AT&T stock also trades at 13 times 2025 earnings, which is noticeably more expensive than Verizon Communications' 9 times forward earnings multiple. However, it's probably worth a premium, since AT&T is adding more postpaid phone customers, generating a superior cash-flow margin, and growing revenue faster than Verizon.

Should you invest $1,000 in AT&T right now?

Before you buy stock in AT&T, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AT&T wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $610,327!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $667,581!*

Now, it’s worth noting Stock Advisor’s total average return is 882% — a market-crushing outperformance compared to 161% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of April 28, 2025

John Ballard has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote