Highlights:
- AT&T shares surge by 4.2% in premarket trading following strong subscriber growth.
- Wireless postpaid net subscriber addition surpasses estimates with 290,000 new subscribers.
- Plans for share repurchases set for the second quarter.
AT&T (T, Financial) has delighted investors with unexpectedly strong first-quarter subscriber growth, resulting in a notable 4.2% uptick in premarket trading. The telecom industry leader outperformed projections by adding 290,000 wireless postpaid net subscribers and has disclosed strategic intentions to commence share repurchases in the upcoming quarter.
Wall Street Analysts Forecast
Analysts are optimistic about AT&T's future performance. Based on projections from 28 financial experts, the telecommunications behemoth holds an average one-year price target of $27.25. Estimates run the gamut from $32.00 on the high end to a more conservative $17.80. This average target suggests a modest upside potential of 1.06% compared to its current trading price of $26.96. Investors seeking more detailed projections are encouraged to consult the AT&T Inc (T, Financial) Forecast page for further insights.
The consensus from 31 brokerage firms positions AT&T at an "Outperform" rating, with an average recommendation score of 2.1. This rating system employs a range where 1 denotes a Strong Buy and 5 indicates a Sell recommendation.
From a valuation perspective, GuruFocus estimates that AT&T's GF Value one year from now stands at $18.48, suggesting a substantial potential downside of 31.45% from the current price of $26.96. The GF Value metric, unique to GuruFocus, represents what the site's experts consider the fair market value of the stock, calculated using the stock's historical multiples, past business growth, and future performance forecasts. For a deeper dive into AT&T's valuation metrics, visit the AT&T Inc (T, Financial) Summary page.
