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KeyBanc Capital Markets sees growth ahead for AT & T . The investment firm upgraded the telecommunications giant to overweight from sector weight. Its $30 price target offers upside of approximately 19% from AT & T's Tuesday close. Shares of AT & T have added 11% this year, but have tumbled 15% since hitting their 2025 high in September. Analyst Brandon Nispel said AT & T looks even more attractive after the pull back, especially combined with the stock's solid capital return. T YTD mountain T YTD chart "We think the recent pullback was driven by competitive-related concerns in Wireless and are overblown," he wrote. "We argue that with AT & T's strategic positioning, growth outlook, and capital return, a historical average multiple is warranted." Nispel applauded AT & T's growth in its convergence business, which combines wireless 5G and wireline fiber networks together. "AT & T's plan to reach 60M Fiber homes and business with Fiber, and its recent acquisition of 3.45GHz spectrum from Echostar, should position AT & T as the leader in convergence," Nispel said. "Ultimately, we think AT & T has ~6.2M converged by the end of 2025, which we think should nearly double to ~12M by 2030, compared to" The company's growth outlook as a whole also looks compelling, Nispel added. He expects the company's adjusted EBITDA to grow by 3% in 2025. This should then accelerate to 4% next year, and closer to 5% in 2027 and 2028. AT & T shares ticked slightly higher after the upgrade. Most analysts are bullish on the stock. Of the 28 who cover it, 17 give it a buy or strong buy, rating, per LSEG.
