Is T a good stock to buy? We came across a bullish thesis on AT&T Inc. on The Boring Finance Guy’s Substack. In this article, we will summarize the bulls’ thesis on T. AT&T Inc.’s share was trading at $28.81 as of March 25th. T’s trailing and forward P/E were 9.31 and 12.29 respectively according to Yahoo Finance.
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AT&T (T) has emerged from its media divestitures as a streamlined, connectivity-first company, with a clear focus on fiber and 5G convergence. The core communications business, comprising Mobility, Consumer Wireline, and Business Wireline, now drives high-quality, cash-generative revenue, with 2025 growth of 2.7% to $125.6 billion and adjusted EBITDA margins of 37.6% in Mobility and 32.8% in Consumer Wireline.
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The Consumer Wireline segment, powered by AT&T Fiber, continues to expand rapidly, while the convergence strategy has increased the proportion of customers taking both fiber and wireless services to 42%, enhancing retention and lifetime value. Strategic acquisitions, including Lumen’s fiber assets and EchoStar spectrum, accelerate AT&T’s “Advanced Connectivity” transition and expand its footprint with lower capital intensity, while fixed wireless initiatives unlock new revenue in areas beyond fiber reach.
Integration of AI for network management and customer service is expected to improve margins further through 2028, complementing $3 billion in planned cost savings from copper decommissioning and efficiency gains. While leverage temporarily rose to 3.2x following these acquisitions, AT&T remains committed to returning to its 2.5x net debt-to-Adjusted EBITDA target, which would unlock substantial shareholder value through a reauthorized buyback program and enhanced dividend security.
Scenario analysis suggests 12-month targets ranging from $18–$40, reflecting upside potential if fiber expansion, 5G convergence, and cost synergies accelerate. With a current Owner Earnings yield of 10.2% covering the 4.6% dividend, AT&T offers both income stability and growth optionality. Once deleveraging progresses toward the 2.5x target, the stock is positioned as an attractive buy, with the combination of strategic growth, operational improvements, and disciplined capital allocation likely to drive significant upside for long-term investors.
Previously, we covered a bullish thesis on AT&T Inc. (T) by Stock Analysis Compilation in November 2024, which highlighted the company’s shift from media to a telecom-focused strategy, 5G network expansion, debt reduction, and sustainability initiatives. T’s stock price has appreciated by approximately 23.8% since our coverage. The Boring Finance Guy shares a similar view but emphasizes fiber expansion, 5G convergence, and deleveraging toward 2.5x EBITDA, making T an attractive buy.
AT&T Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 77 hedge fund portfolios held T at the end of the fourth quarter which was 84 in the previous quarter. While we acknowledge the risk and potential of T as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than T and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
