Wolfe Research Just Upgraded AT&T Stock. Here's Why.

Wolfe Research analysts led by Peter Supino believe AT&T (T) stock will recover almost all of its first-half losses by the end of 2026. 

In a research note on Thursday, he upgraded the telecom giant to “Outperform” and raised the price target to $29, indicating potential for a 26% rally from current levels. 

Supino’s bullish call brings a much-needed reprieve to AT&T shares that are currently down nearly 22% versus their year-to-date high. 

What Made Wolfe Research Upgrade AT&T Stock?

The primary catalyst behind Supino’s upgrade is AT&T’s market-beating Q2 earnings, featuring improving subscriber trends. 

According to Supino, the company’s current forward earnings multiple (less than 10x) does not reflect its underlying fundamentals, with continued fiber adoption and cost discipline broadly expected to drive future growth. 

AT&T managed to cap churn at 0.86% in its second fiscal quarter despite recent price hikes, which reinforces confidence in its pricing strategy, the analyst added. 

Investors could also take heart in the fact that T stock currently pays a rather lucrative dividend yield of 4.85%, which makes it even more attractive as a long-term holding.

CEO Downplays Starlink Competition Fears

Peter Supino is fully convinced that AT&T’s strategy to bundle wireless service with “high-speed” fiber broadband is helping with customer retention and volume growth without relying on notable device subsidies. 

Backed by expanding margins, Wolfe raised its 2026 adjusted EBITDA forecast to over $48 billion and expects the telecom giant to accelerate share repurchases to as much as $10 billion this year.

In a post-earnings interview with CNBC, CEO John Stankey bluntly stated that AT&T is “strongly positioned to compete with anybody,” even SpaceX’s (SPCX) Starlink. 

This reinforces confidence in the firm’s ability to sustain its operational momentum and defend its market share against both traditional telecom rivals and emerging satellite-based competitors. 

What’s the Consensus Rating on AT&T?

Other Wall Street analysts also agree with Supino’s constructive view on AT&T stock. 

According to Barchart, the consensus rating on the NYSE-listed firm currently sits at “Moderate Buy," with price targets as high as $36 indicating potential upside of well over 50% from here.