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.

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.

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