Here’s What the Street Thinks About AT&T Inc. (T)’s Lumen’s Mass Markets Fiber Business Acquisition

​AT&T Inc. (NYSE:T) is among the Best Affordable Stocks Under $40 to Buy. Wall Street has a mixed opinion on AT&T Inc. (NYSE:T) since the company announced the acquisition of Lumen’s Mass Markets fiber business on February 2. The stock has gained more than 9% since the announcement.

​Recently, on February 11, Jonathan Atkin from RBC Capital reiterated a Buy rating on the stock and raised the price target from $29 to $31. However, earlier on February 2, Barclays reiterated a Hold rating on the stock with a price target of $26.

AT&T Inc. (NYSE:T) completed the acquisition of Mass Markets fiber business for a $5.75 billion all-cash purchase. Management noted that the strategic acquisition adds over 1 million existing fiber subscribers right away, along with fiber infrastructure in 32 states. This speeds up the company’s fiber rollout beyond its core regions, targeting 60 million+ passable locations by 2030.

​Analyst Atkin from RBC noted AT&T Inc.’s (NYSE:T) fiber expansion strategy puts the company on a long-term growth trajectory. The firm believes that this protects the company from increased competition in the wireless segment. Moreover, RBC also praised AT&T’s faster phase-out of outdated copper-based assets, which the firm believes should deliver significant free cash flow growth through 2028 and later by slashing maintenance costs.

​AT&T Inc. (NYSE:T) is a leading global telecommunications company providing wireless, broadband, and, through its subsidiaries, fiber internet to consumers and businesses. It operates as a major 5G network operator in the U.S. and provides connectivity services in Mexico, focusing on high-speed internet and mobility.

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Disclosure: None. This article is originally published at Insider Monkey.