BofA Sees Upside in AT&T (T) With Bonus Depreciation Boost

AT&T Inc. (NYSE:T) ranks among the best low volatility stocks to buy according to analysts. On July 7, BofA Securities resumed coverage of AT&T Inc. (NYSE:T) with a Buy rating and a price target of $32. The firm attributes the optimistic forecast in large part to AT&T’s balanced approach to increasing growth through its owned fiber and wireless assets.

BofA Sees Upside in AT&T (T) With Bonus Depreciation Boost

Ken Wolter / Shutterstock.com

The positive outlook is further supported by AT&T’s robust return on capital plans, targeted at $40 billion. Additionally, the company stands to gain a great deal from the possible return of bonus depreciation, which BofA projects could boost free cash flow by 21% in 2026 and 26% in 2027.

According to BofA’s 2026 expected EV/EBITDA metrics, AT&T Inc. (NYSE:T) is now trading at a 30% discount to T-Mobile and a 9% premium to Verizon. The firm believes that with AT&T’s operational momentum, this gap in valuation should narrow.

AT&T Inc. (NYSE:T), the world’s largest telecommunications business and the leading supplier of mobile phone services in the United States, is a multinational conglomerate holding corporation headquartered in Texas that offers telecommunications, media, and technology services.

While we acknowledge the potential of T to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than T and that has 100x upside potential, check out our report about this cheapest AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.