It’s time to step to the sidelines on AT & T, according to Barclays. Analyst Kannan Venkateshwar downgraded AT & T to equal weight from overweight on Wednesday, but kept his price target unchanged, saying the telecommunications stock is more fairly valued after its recent gains, and that the company faces some challenges ahead. Including reinvested dividends, AT & T has returned almost 30% in 2025. “Industry growth mix shift points to a different growth phase in telecom, which could create risks into next year,” Venkateshwar wrote. “Downgrade AT & T to EW with valuation now more reflective of operational improvement.” T YTD mountain AT & T in 2025 AT & T has outperformed this year after reporting strong customer growth, according to Barclays. In August, it also reached a deal with EchoStar to buy wireless spectrum licenses for about $23 billion. Yet, Barclays’ Venkateshwar expects the environment will likely get more difficult for the wireless carrier in the future, as the entire sector deals with elevated churn — the pace at which customers are added and removed. “We continue to expect the company to maintain its current operational outperformance but expect equity upside to be a lot more limited from present levels,” the Barclays analyst wrote. Barclays $30 price target is about 6% above where the stock closed Tuesday, at $28.24. The stock, which yields almost 4%, fell 1% in premarket trading Wednesday.