Bank of America's analyst David Barden has increased the price target for AT&T (T) from $28 to $32 while maintaining a Buy rating on the stock. The upgrade follows robust first-quarter results driven by strong performances in the Wireless and Consumer Wireline segments.
Barden highlighted that AT&T's strategy to pass any rise in handset costs to subscribers aligns with industry standards and should ease concerns regarding potential tariff-related impacts on profitability. The decision to raise the price target also considers an improved free cash flow multiple, which reflects the company's steady growth, enhanced shareholder returns, and a reliable domestic business model.
