Oppenheimer Turns Cautious on AT&T (T), Citing Fiber Expansion Risks

With a net profit margin of 18.6%, AT&T Inc. (NYSE:T) is included among the 10 Most Profitable Dividend Stocks to Invest In Now

Oppenheimer Turns Cautious on AT&T (T), Citing Fiber Expansion Risks

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On June 3, Oppenheimer analyst Timothy Horan downgraded AT&T Inc. (NYSE:T) to Perform from Outperform. The firm said it is becoming more cautious about AT&T’s long-term broadband growth outlook and believes mobile subscriber growth could eventually face pressure as low Earth orbit (LEO) satellite constellations become a more serious competitive threat. Oppenheimer noted that AT&T has greater broadband exposure than its telecom peers, though it remains less exposed than cable providers. AT&T plans to add 7 million new fiber passings this year and roughly 5 million annually after that, to reach more than 60 million locations by 2030. Oppenheimer believes adoption rates may fall short of expectations and suggested the company could ultimately stop expansion at around 50 million homes.

On May 20, AT&T announced a commitment to invest $19 billion in California’s fiber and wireless networks by the end of 2030. The company said the investment is aimed at supporting the high-speed connectivity needed for the next phase of innovation and economic growth across the state.

With updated federal policies supporting network modernization, AT&T said it plans to invest $3 billion more during the 2026-2030 period than it did between 2021 and 2025. That would bring its total network investment in California to $35 billion over the decade from 2021 through 2030.

Alongside the $19 billion commitment, the company said it will continue offering affordable connectivity options, strengthen its workforce across the state, and work with organizations focused on narrowing the digital divide.

AT&T Inc. (NYSE:T) is a holding company that provides telecommunications and technology services around the world. The company operates through its Communications and Latin America segments.

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