RBC Capital Raises AT&T Target on Fiber-Driven Growth Outlook

AT&T Inc. (NYSE:T) is included among the 14 Best Low Volatility Dividend Stocks to Invest in.

On February 12, RBC Capital raised its price recommendation on AT&T Inc. (NYSE:T) to $31 from $29. The firm maintained an Outperform rating on the stock. The analyst said the company’s fiber expansion is creating a clear long-term growth path. At the same time, this investment helps protect its wireless business from rising competition. The firm also noted that AT&T’s ongoing exit from legacy assets is expected to significantly boost free cash flow through 2028 and beyond.

During the Q4 2025 earnings call, CEO John Stankey said the company delivered results that met or exceeded its full-year guidance. Growth in both 5G and fiber subscribers played a major role in that performance. He said AT&T added more than 1.5 million postpaid phone customers in 2025. This marked the fifth straight year the company reached that level. Fiber growth remained strong as well, with more than 1 million AT&T Fiber net additions for the eighth consecutive year.

Stankey also highlighted the company’s shareholder returns. AT&T returned more than $12 billion through dividends and share buybacks. That total was more than 50% higher than what it returned in 2024. He also confirmed that AT&T had finalized deals to acquire spectrum licenses from EchoStar and fiber assets from Lumen. Both transactions are expected to close in early 2026. Once completed, and combined with Gigapower and the Lumen fiber assets, AT&T expects its fiber network to reach more than 40 million locations by the end of the year. That would be up from 32 million locations at the end of 2025.

Stankey said the company is continuing to accelerate its fiber buildout. AT&T plans to expand fiber coverage by about 5 million locations per year for the rest of the decade. He added that the company is also seeing better customer overlap between its fiber and wireless services. AT&T’s fiber convergence rate improved by 200 basis points year over year to 42%. This marked the fastest annual increase since the company began tracking that measure.

AT&T Inc. (NYSE:T) operates as a global telecommunications and technology holding company. Its business is primarily organized into Communications and Latin America segments, serving both consumer and business customers.

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