Street View: Bundles, discount plans to help AT&T, but churn concerns remain

Morningstar

23/04/2026 10:51

** Telecom provider AT&T T.N added more wireless subscribers than anticipated in Q1, boosted by customers choosing bundled plans that combine wireless service with high-speed fiber internet

** Median PT of 28 brokerages covering stock is $30 - LSEG-compiled data

GROWTH LEVERS ALIGN

** Raymond James ("strong buy") says AT&T is sharpening its focus on dual connectivity for customers and enterprise accounts, with its fixed wireless access product well-positioned to support larger enterprise bids and locations

        ** Morningstar (fair value: $27) says returns on invested capital should rise as fiber penetration grows and costs decline, aided by the shutdown of legacy phone networks

     ** Morgan Stanley ("overweight," PT: $30) expects higher postpaid churn from elevated switching activity largely offset by stronger gross additions as AT&T expands its converged customer base

** TD Cowen ("hold," PT: $32) says AT&T's shift away from aggressive device subsidies, could keep churn elevated near term, with higher gross adds continuing as co uses its convergence strategy to offset losses

 (Reporting by Kanishka Ajmera in Bengaluru)

 ((Kanishka.Ajmera@thomsonreuters.com))