RBC Capital on Thursday raised its price objective for AT&T (NYSE:T) to $31.00 from $29.00 while keeping an Outperform recommendation on the telecommunications company. The change in target reflects what the firm describes as stronger visibility into AT&T’s growth trajectory and shareholder return prospects after the company’s year-end 2025 financial disclosures and segment restatements.
In written remarks, RBC analyst Jonathan Atkin emphasized AT&T’s ongoing fiber expansion, calling it a long-term growth trajectory that should help shield the wireless business from competitive pressures. The firm also highlighted the company’s expedited unwind of its legacy portfolio, which RBC expects will translate into material free cash flow (FCF) expansion into 2028 and beyond.
RBC’s commentary links recent corporate actions and reporting changes to an improved line of sight on the company’s sustainable growth potential. The firm framed the combination of network investment and portfolio simplification as central to its decision to lift the price target while maintaining the same analyst rating.
AT&T’s most recent quarterly results provided supporting context for that outlook. For the fourth quarter of 2025, AT&T reported earnings per share of $0.52, ahead of the $0.46 that analysts had forecast - a 13.04% surprise. Revenue for the quarter came in at $33.5 billion versus expectations of $32.87 billion. RBC and market participants point to those beats as contributors to the more constructive view on the company’s near-term financial performance.
Taken together, RBC’s note places emphasis on two strategic elements: expanding fiber infrastructure, which the firm views as a durable source of growth and a buffer against wireless competition, and the faster-than-expected disposal or simplification of legacy holdings, which RBC believes will help drive a step-up in FCF in the coming years.
Key context for readers:
- RBC raised AT&T’s price target to $31.00 from $29.00 and kept an Outperform rating.
- The firm cited AT&T’s year-end 2025 results and segment restatements as the basis for increased confidence.
- AT&T reported Q4 2025 EPS of $0.52 and revenue of $33.5 billion, both above analyst expectations.