Citi Maintains "Buy" Rating for AT&T with $32 Target Price

Citi maintains a "Buy" rating on AT&T with a target price of $32, expecting the company to emphasize convergence opportunities. AT&T's wireless business contributes 70% of revenue, with a total revenue of $123.98 billion over the past year. The company's revenue growth has been modest, with a 3-year decline of 1.7% and a 5-year decline of 6.5%. However, its operating margin shows signs of expansion, and its debt-to-equity ratio is on the higher side.

AT&T Inc.'s (NYSE: T) stock price dropped 2.14% to $28.81 on Friday, July 2, 2025, ending a six-session rally. The stock had closed in the green every day from August 14 to August 21, but the telecom provider's share price fell on the final day of the streak. The decline marked the end of the consecutive gains, but the stock's performance remains positive overall [1].

The recent rally was driven by several factors, including positive earnings reports and increased institutional holdings. AT&T reported a quarterly earnings per share of $0.54, exceeding estimates, and had a revenue of $30.85 billion, up 3.4% year-over-year [1]. Several institutional investors, including Norinchukin Bank The, Integras Partners LLC, CW Advisors LLC, United Asset Strategies Inc., Price T Rowe Associates Inc. MD, and Luts & Greenleigh Group Inc., increased their positions in AT&T during the first quarter [1].

Despite the recent decline, AT&T's stock remains relatively strong. The stock has a market cap of $209.26 billion, a P/E ratio of 16.63, and a beta of 0.42 [1]. The company's debt-to-equity ratio is 1.01, and its current ratio is 0.81 [1].

Analysts have been positive on the stock. Williams Trading set a $30.00 price objective on shares of AT&T, and Morgan Stanley increased their price target to $32.00 with an "overweight" rating [1]. The stock has an average rating of "Moderate Buy" and a consensus price target of $30.21 [1].

MetLife Investment Management LLC reduced its holdings in AT&T Inc. by 1.8% during the first quarter, selling 34,812 shares [2]. Other institutional investors and hedge funds have also recently bought and sold shares of the company. Capstone Wealth Management LLC purchased a new stake in AT&T in the first quarter valued at $201,000. DigitalBridge Group Inc. raised its position in AT&T by 14.6% in the fourth quarter, now owning 2,865,814 shares valued at $65,255,000. Wedmont Private Capital raised its position in AT&T by 7.9% in the first quarter, now owning 123,247 shares valued at $3,302,000 [2].

Napa Wealth Management has made a significant investment of $1.61 million in AT&T, acquiring 56,788 shares during the first quarter [3]. Wells Fargo increased their price target for AT&T's stock from $30.00 to $31.00, signaling a positive outlook for the company [3].

Citi maintains a "Buy" rating on AT&T with a target price of $32, expecting the company to emphasize convergence opportunities. AT&T's wireless business contributes 70% of revenue, with a total revenue of $123.98 billion over the past year. The company's revenue growth has been modest, with a 3-year decline of 1.7% and a 5-year decline of 6.5%. However, its operating margin shows signs of expansion, and its debt-to-equity ratio is on the higher side [4].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-norinchukin-bank-the-raises-stock-position-in-att-inc-t-2025-08-21/
[2] https://www.marketbeat.com/instant-alerts/filing-metlife-investment-management-llc-trims-stock-holdings-in-att-inc-t-2025-08-24/
[3] https://www.marketbeat.com/instant-alerts/filing-napa-wealth-management-makes-new-161-million-investment-in-att-inc-t-2025-08-23/
[4] https://www.marketbeat.com/instant-alerts/citi-maintains-buy-rating-on-att-with-target-price-of-32/