Goldman Sachs believes AT & T could continue its upward momentum. The bank reiterated its buy rating on the mobile phone service provider in a note to clients on Tuesday. Analyst James Schneider’s price target of $29 suggests AT & T could rise another 8% from their Monday closing price of $26.96, excluding the company’s 4.1% dividend yield. Shares of AT & T have added 21% this year, bringing the past year’s return to more than 60%, again excluding its high dividend. AT & T is also far less volatile than the rest of the market, with a beta of just 0.64, according to FactSet data. T 1Y mountain T 1Y chart Going forward, Schneider believes a combination of “solid subscriber growth and customer migration up the pricing curve” should result in analysts raising their AT & T earnings estimates over several years. “We have gained incremental conviction on our bull thesis on AT & T — and continue to see upside to both Street estimates and the stock’s multiple — which in our view justifies healthy double-digit annualized returns for the stock,” Schneider wrote. “Taking together the opportunities we see on both fundamentals and valuation, implies upside potential for T above $40 over time, or a compounded equity return of over 10%.” Eventually rallying to $40 would equal potential upside of 48% from where AT & T trades today. AT & T’s sustainable, high yield is a big part of its appeal, Schneider said. “We see AT & T as an increasingly compelling idea in the current volatile market environment because of multiple reasons including idiosyncratic market share gains within the telecom market, lack of direct connection to the ‘AI theme,’ defensive business characteristics, low stock volatility and high dividend yield,” Schneider wrote. The Goldman analyst also pointed to AT & T’s position as the “most aggressive builder of fiber in the United States today” as a tailwind for the Dallas-based company. AT & T’s fiber network strategy should drive broadband revenue to “accelerate notably in 2028 and beyond,” Schneider added. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
