KeyBanc has reiterated its Overweight rating on AT&T (NYSE:T) and maintained a $30.00 price objective, saying the company’s strategic consistency and growth-focused repositioning support a stronger earnings trajectory and enhanced shareholder returns.
In its analysis, KeyBanc projects adjusted EBITDA growth for AT&T to pick up from 3.5% in 2026 to above 5% in 2028. The firm also anticipates that capital returns to shareholders will rise as the company progresses through this transition.
KeyBanc highlights AT&T’s plan to retire its remaining "Legacy" copper network assets by 2029. That move is presented as part of a broader shift of resources and investment toward higher-growth segments of the business.
The report identifies three strategic growth pillars - "Advanced Connectivity," 5G and Fiber - and forecasts these assets will expand EBITDA at a mid-single to high-single digit pace for the foreseeable future. KeyBanc frames that steady performance across growth segments as a reason it expects the market to apply a higher valuation multiple to AT&T over time.
Recent company results add context to the analyst view. For the fourth quarter of 2025, AT&T delivered earnings per share of $0.52, ahead of the $0.46 consensus, representing a 13.04% upside to expectations. Revenue for the quarter was $33.5 billion, above the $32.87 billion forecast. Those beats are noted as reinforcing the company’s ability to exceed projections.
KeyBanc also contends that rival providers will find it difficult to match AT&T’s combined offering across its targeted growth areas, a competitive positioning that underpins the firm’s optimism.
Outside of the rating and results, the report indicates there have been no recent updates on mergers involving AT&T, nor are there any new analyst upgrades or downgrades at this time. These conditions are described as leaving investors with a clearer line of sight on the company’s current operating performance and strategic direction.
Clear summary
KeyBanc maintains an Overweight rating and $30.00 price target on AT&T, citing an expected acceleration in adjusted EBITDA from 3.5% in 2026 to above 5% in 2028, increasing capital returns, the planned retirement of copper assets by 2029, and mid- to high-single-digit EBITDA growth anticipated in Advanced Connectivity, 5G and Fiber. AT&T’s Q4 2025 results topped EPS and revenue forecasts. No new merger activity or analyst rating changes have been reported.
Key points
- KeyBanc reaffirms Overweight on AT&T with a $30.00 target, citing strategic clarity and growth potential - impacts telecom and investor sentiment.
- Adjusted EBITDA is expected to accelerate from 3.5% in 2026 to over 5% in 2028, while capital returns should increase - relevant to equity valuation and fixed-income considerations.
- AT&T’s Advanced Connectivity, 5G and Fiber businesses are forecast to deliver mid-single to high-single-digit EBITDA growth, supporting a potential re-rating of the stock - material to infrastructure and network equipment markets.
Risks and uncertainties
- The timeline to fully retire "Legacy" copper assets by 2029 could face execution or timeline risks - this affects capital expenditure planning and telecom infrastructure sectors.
- Competitive dynamics remain a potential uncertainty; while KeyBanc expects rivals to struggle to match AT&T’s offering, market responses could alter outcomes - this touches consumer telecom and enterprise connectivity markets.
- No recent M&A developments or analyst rating changes were reported, leaving some investors reliant on operational performance and guidance as primary drivers of near-term valuation - relevant to equity investors and analysts covering the telecom sector.
Investors tracking AT&T can weigh KeyBanc’s view alongside the company’s recent earnings beats and the stated strategic pivot away from copper toward higher-growth connectivity assets when forming their own assessments.