AT&T (T) Stock Forecast & Price Target

AT&T is a dominant wireless carrier in the US, with a strong presence in both the residential and enterprise markets. With the recent sale of its stake in DirecTV, the company has increased its focus on its wireless business and is accelerating its fiber build to reach more customers. This, coupled with a strong convergence strategy and potential for high total return of capital, makes AT&T an attractive investment opportunity.

AT&T is facing significant challenges in its wireless business with increasing competition and slowing growth, as well as potential risks in its other segments such as satellite and fixed-line enterprise services. The recent asset sale of its stake in DirecTV will provide some relief in reducing leverage, but it may not be enough to offset the continued high and unsustainable dividend distribution model. With the prospect of a dividend cut looming and a lack of clarity on the incoming CEO's vision and action plan, the stock's outlook remains negative. Additionally, the Legacy segment is expected to be a major headwind for EBITDA growth through 2029, which could impact overall earnings.