RBC Capital Raises AT&T Target on Fiber-Driven Growth Outlook

Core Viewpoint - AT&T Inc. is recognized as one of the best low volatility dividend stocks, with a positive outlook driven by fiber expansion and strategic asset management [1][8]. Group 1: Financial Performance and Growth - RBC Capital raised its price target for AT&T from $29 to $31, maintaining an Outperform rating, citing fiber expansion as a key growth driver [2]. - In Q4 2025, AT&T exceeded its full-year guidance, adding over 1.5 million postpaid phone customers, marking the fifth consecutive year of such growth [3]. - The company reported strong fiber growth with over 1 million net additions for the eighth straight year [3]. Group 2: Shareholder Returns and Strategic Moves - AT&T returned over $12 billion to shareholders through dividends and share buybacks, a 50% increase compared to 2024 [4]. - The company finalized deals to acquire spectrum licenses from EchoStar and fiber assets from Lumen, expected to close in early 2026, which will expand its fiber network to over 40 million locations by the end of 2026 [4]. Group 3: Fiber Expansion Strategy - AT&T plans to accelerate its fiber buildout by expanding coverage by approximately 5 million locations annually for the remainder of the decade [5]. - The fiber convergence rate improved by 200 basis points year-over-year to 42%, indicating better customer overlap between fiber and wireless services [5].