RBC upgrades AT&T (T.US) and downgrades T-Mobile US (TMUS.US) in its latest stock rating assessment.

Analysts at RBC Capital Markets raised their investment rating on AT&T (T.US) and downgraded T-Mobile US (TMUS.US) over the weekend. RBC is confident in AT&T's growth plans, saying the company will benefit from user growth from future fiber investments. They also see the additional disclosure on copper retirement as a positive signal. The firm said in a report on January 5: "We expect the $6bn copper-related costs to be cut nearly in half by 2027 and continue to increase over the next few years." RBC raised its rating on AT&T from "In-Line Sector Perform" to "Outperform," and raised its target price by $4 to $26, implying 14.7% upside. Regarding T-Mobile US, the firm said the company's execution seems solid, but the risk-reward is less favorable at current valuations. They also noted that the company's fundamentals remain intact. RBC said: "The company's growth deceleration in 2025 is partly due to a decline in wholesale revenue, and we will closely monitor signs of growth recovery." RBC downgraded T-Mobile US from "Outperform" to "In-Line Sector Perform," and cut its target price by $15 to $240, implying 9.5% upside.