JPMorgan Boosts AT&T Price Target to $33, Sees Undervalued Stock Opportunity

JPMorgan has raised its price target for AT&T from $31 to $33 and maintains an Overweight rating. The firm sees a promising outlook for the company, citing strong Q2 performance and favorable medium-term EBITDA projections. Analysts believe AT&T is undervalued and presents a compelling investment opportunity at its current price level. The average target price for AT&T is $29.24, with a high estimate of $34.00 and a low estimate of $19.00.

AT&T Inc. (T, Financial) has seen its stock price target increase from $31.00 USD to $33.00 USD, according to a recent update from JP Morgan analyst Sebastiano Petti [1]. This revision represents a 6.45% increase in the target price, reflecting a positive outlook on the company's future market performance. Despite the adjustment, JP Morgan maintains an "Overweight" rating on AT&T, indicating a favorable investment stance.

The revised target price comes amidst AT&T's strong second-quarter 2025 earnings report. The company reported revenues of $30.8 billion, a 3.5% year-over-year increase, and net income of $4.9 billion [2]. Mobility service revenues grew by 3.5%, while consumer fiber broadband revenues increased by 18.9%. AT&T's aggressive fiber expansion plans, including a goal to reach 50 million customer locations by 2030, are expected to drive future growth.

Analysts' consensus is bullish on AT&T, with an average target price of $29.24, a high estimate of $34.00, and a low estimate of $19.00 [1]. The consensus recommendation from brokerage firms is "Outperform," suggesting that AT&T presents a compelling investment opportunity at its current price level.

Looking ahead, AT&T expects strong consumer fiber broadband revenue growth of double-digits. The company's outlook for the year remains solid, with EPS and free cash flow expected to decline in 2025 but accelerate growth beyond that [2]. AT&T's balance sheet continued to improve, with net debt standing at $120.3 billion and total debt at $132.3 billion. The company plans to repurchase $4 billion worth of shares in 2025 [2].

Despite the stock's recent pullback, AT&T continues to see strong subscriber additions and is expected to benefit from favorable tax provisions in the "One Big, Beautiful Bill" [3]. The company is focusing on ramping up its fiber network to compete against Verizon, which is set to expand its fiber network through its acquisition of Frontier Communications next year.

In conclusion, AT&T's strong Q2 performance and promising medium-term EBITDA projections have led JP Morgan to raise its price target and maintain an "Overweight" rating. The company's aggressive expansion plans and favorable outlook make it an attractive investment opportunity for investors.

References:
[1] https://www.gurufocus.com/news/3002389/att-t-stock-target-price-raised-by-jp-morgan-t-stock-news
[2] https://www.ainvest.com/news/q2-2025-3-5-revenue-growth-18-9-fiber-broadband-revenue-increase-net-income-soars-4-9-billion-2507/
[3] https://www.nasdaq.com/articles/att-shares-have-sunk-despite-subscriber-surge-time-buy-dip