Is AT&T Stock Going to $34? 1 Wall Street Analyst Thinks So.

Core Viewpoint - AT&T stock has shown strong performance with a 64% increase over the last year, and analysts see further upside potential following the first-quarter earnings report, maintaining a buy rating and raising the price target from $32 to $34, indicating a 23% upside from the current price of $27.71 [1] Group 1: Financial Performance - In the first quarter, AT&T reported 324,000 postpaid phone net additions, reflecting strong customer acquisition [1] - The company achieved a postpaid churn rate of 0.83%, indicating low customer cancellations [1] - Revenue from fiber broadband grew by 19% year over year in Q1, showcasing successful cross-selling of fiber internet services [2] Group 2: Competitive Position - Despite increased competition, AT&T's churn rate suggests effective customer retention and acquisition strategies [3] - Management attributes the positive momentum to a commitment to quality service and attractive offers, branded as the AT&T Guarantee, supported by investments in fiber infrastructure and network upgrades [3] Group 3: Valuation and Comparison - AT&T stock trades at 13 times 2025 earnings, which is higher than Verizon Communications' 9 times forward earnings multiple, but this premium is justified by AT&T's superior customer growth, cash-flow margins, and revenue growth [5]