MoffettNathanson Adjusts Price Target on AT&T to $23 From $24, Maintains Neutral Rating

Shares of banks, insurers, and travel agencies fell as investors worry about Meta's AI agent, Muse, disrupting industries reliant on consumer inertia. Meta's stock rose 11% on Monday. Affected companies include JPMorgan, Morgan Stanley, Allstate, Charles Schwab, Expedia, and Booking Holdings. Goldman Sachs identifies telecoms, insurance, and utilities as sectors at risk.

AT&T (T) grew revenue 2.6% vs. Verizon's 1.4% in the past year, both with ~20% margins. AT&T trades at 8.2x earnings, lower than Verizon's 12.4x. AT&T's growth comes from fiber and wireless, with 42.5% of home internet customers also having wireless. Management increased buybacks to $10B for 2026, aiming to reduce debt. Verizon's stock returned 16.2% vs. AT&T's -10.0% over the past year, but AT&T's stock is up 16.9% in the past three months.

BNP Paribas upgraded AT&T to Outperform, raising its price target to $30 from $26. The firm cites rationalizing wireless competition and expects AT&T's wireless service revenue growth to accelerate in late 2026. AT&T's premarket trading showed a 1% increase to $25.57.

A US federal judge ordered antitrust claims against AT&T, Verizon, and T-Mobile over Wi-Fi calling to go to arbitration, dismissing the case brought by VoIP-Pal.

AT&T is partnering with LifeMD to waive its $19 monthly membership fee for over 100 million wireless and fiber customers, making it the first carrier to bundle no-cost virtual healthcare access. The rollout begins in 11 states, with the rest following in January 2027. LifeMD (LFMD) provides telehealth services, and AT&T aims to enhance customer retention. AT&T's stock is valued at $29.03 per share, with projected slight earnings declines due to heavy capital spending.

AT&T (T) is expanding fiber to 8 million new locations, with $23B-$24B capital investment expected in 2026. It reports blended subscriber growth and positions its network for AI traffic. Management highlights strong EBITDA margins and revenue growth, raising buybacks to $10B. The stock is down 7% year-to-date but up 36% over two years.