AT&T (T): Assessing Valuation Following Breakthrough Subway Connectivity Rollout in New York City

AT&T is taking a big step forward with its New York City network rollout, flipping the switch on cellular service for Brooklyn subway riders in the historic Joralemon Street tunnel. With the G line set to follow, this move highlights AT&T’s role in boosting subway connectivity and 5G infrastructure across the city.

See our latest analysis for AT&T.

AT&T’s commitment to next-gen connectivity is drawing fresh attention after a busy year, with its latest subway launch arriving just as the company wrapped up high-profile presentations in Europe. Despite a recent 10.8% dip in the 30-day share price return, AT&T’s long-term picture is decidedly brighter. Shareholders have seen a robust 25.9% total return in the past year and an impressive 82.3% total return over three years, suggesting that momentum may be building anew for both the business and the stock.

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After a period of steady gains and renewed operational momentum, the question now turns to valuation. With AT&T shares trading at a discount to analyst targets and solid returns in recent years, investors may be wondering if there is still untapped upside here or if the company’s future growth is already being priced in.

Most Popular Narrative: 14% Undervalued

With AT&T closing at $26.34 and the most popular narrative assigning a fair value of $30.62, the stock is seen as trading well below what is believed to be justified. This gap in valuation sets the stage for a closer look at what is fueling such optimism.

The push toward network convergence (fiber plus 5G) is yielding higher-value, lower-churn subscriber relationships, increasing ARPU and enhancing customer lifetime value. This supports sustainable improvements in net margins and earnings. Expansion of the fiber footprint (including acquisitions like Lumen’s assets and open access partnerships) positions AT&T to benefit from digital transformation, cloud growth, and demographic shifts such as urbanization and remote work. These factors further stabilize and grow its customer base and revenues.

Read the complete narrative.

Wondering what critical financial targets fuel this bullish narrative? The future profit engine here hinges on ambitious long-term growth, margin expansion, and a premium profitability profile. The full narrative reveals which bold projections support the case for a much higher fair value and why it stands out among telecom stocks.

Result: Fair Value of $30.62 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, elevated wireless churn and ongoing declines in legacy revenues could challenge the bullish outlook and slow the broader growth story for AT&T.

Find out about the key risks to this AT&T narrative.

Build Your Own AT&T Narrative

If you’d rather dig into the numbers independently or think you’ve spotted something others have missed, it only takes a few minutes to shape your perspective. Do it your way.

A great starting point for your AT&T research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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