AT&T: BofA Securities reinstates Buy rating with $32 price target.

AT&T: BofA Securities reinstates Buy rating with $32 price target.

Bank of America Securities (BofA) has reinstated its coverage of the U.S. telecom sector, assigning a Buy rating to AT&T (NYSE:T) with a price target of $32, according to a recent note. The firm highlighted that AT&T has delivered a total return of 84% since 2023, outperforming T-Mobile (NYSE:TMUS) and Verizon (NYSE:VZ) by significant margins [1].

BofA believes that company-specific dynamics now outweigh macro or sector-wide trends, positioning AT&T as the best opportunity for driving stock performance. The firm expects AT&T to deliver the highest projected return of capital (dividends + buybacks) in 2026 at 7.2% of market cap [1].

However, BofA noted that Verizon's acquisition of Frontier brings "execution uncertainty" and could weigh on free cash flow. For T-Mobile, the firm sees limited room for upward estimate revisions, citing a premium valuation and focus on net addition targets [1].

Additionally, BofA cited competitive risks as broadband providers expand and cable companies step up their push into wireless, stating that "territorial integrity is being tested, and competitive intensity is increasing" [1].

Institutional investors have also shown interest in AT&T. Bank of New York Mellon Corp lowered its position in AT&T shares by 4.3% in the first quarter, selling 3,685,874 shares. However, several hedge funds and other institutional investors have bought new stakes in AT&T, with REAP Financial Group LLC boosting its stake by 115.2% in the fourth quarter [2].

Analysts have also set new price targets for AT&T. Morgan Stanley reaffirmed an "overweight" rating with a $31.00 price objective, while Evercore ISI upped their price target to $27.00. Tigress Financial increased their price target to $34.00, and Wall Street Zen upgraded shares to a "buy" rating. Oppenheimer raised their price target to $32.00, giving the company an "outperform" rating [2].

AT&T announced a quarterly dividend of $0.2775, representing a $1.11 dividend on an annualized basis and a dividend yield of 3.92%. The ex-dividend date is July 10th [2].

References:
[1] https://uk.finance.yahoo.com/news/bofa-says-telecom-stocks-under-112408020.html
[2] https://www.marketbeat.com/instant-alerts/filing-bank-of-new-york-mellon-corp-sells-3685874-shares-of-att-inc-nyset-2025-07-05/