AT&T Inc. (NYSE: T) shares eased lower on Wednesday, December 10, 2025, closing at $24.56, down about 0.6% on the day, with roughly 16 million shares changing hands. [1] The move extends a mild three‑day pullback from last week’s levels above $25, even as the stock remains more than 20% higher year‑to‑date, according to recent coverage of CEO John Stankey’s comments at a Wall Street Journal event. [2]
Trading comes against a busy backdrop: a fresh price‑target cut from Morgan Stanley, a growing list of 5G and fiber milestones, a high‑profile lawsuit against T‑Mobile US, and ongoing scrutiny of AT&T’s debt, data‑breach settlement and decision to end DEI programs. Here’s a structured look at what investors need to know today.
AT&T stock today: price, valuation and dividend snapshot
According to Investing.com’s historical data, AT&T opened Wednesday at $24.35, traded between $24.31 and $24.59, and closed at $24.56, on volume just under 16 million shares, down 0.63% for the session. [3]
Fundamentally, the stock still screens as inexpensive relative to peers:
- Forward P/E: around 12x, versus an industry forward P/E near 18–19x, based on Zacks’ latest sector comparison. [4]
- Insider Monkey pegs AT&T’s forward P/E at 12.32, noting 84 hedge funds hold positions in the stock. [5]
On income, data from dividend‑tracking sites show AT&T has paid $0.2775 per share per quarter recently, or roughly $1.11 annually, implying a dividend yield of about 4.5% at Wednesday’s closing price in the mid‑$24s. [6]
For 2025, Zacks consensus calls for EPS of $2.06 (down about 8.9% year‑over‑year) on revenue of $124.96 billion (up about 2.1%), leaving AT&T trading at a forward earnings multiple slightly above 12x on those estimates. [7]
Wall Street today: Morgan Stanley trims target, consensus still bullish
The headline sell‑side move on December 10 came from Morgan Stanley. Analyst Simon Flannery:
- Cut his 12‑month price target from $32 to $30,
- While reiterating an “Overweight” rating on AT&T. [8]
GuruFocus’ summary of the call notes that Morgan Stanley’s change fits into a broader pattern of cautious optimism: recent actions include KeyBanc upgrading AT&T to “Overweight” with a $30 target, Barclays trimming its target to $28 with an “Equal‑Weight” rating, RBC Capital staying “Outperform” at $30, and Wells Fargo keeping “Overweight” but cutting its target to $29. [9]
Across Wall Street:
- MarketScreener aggregates 25 analysts with a mean “BUY” consensus and an average target price of about $30.53, roughly 25% above the company’s last close around $24.50. [10]
- MarketBeat similarly reports a “Moderate Buy” consensus: 1 Strong Buy, 16 Buy, 8 Hold, with an average target of $30.55 and a high estimate of $34. [11]
- TipRanks shows 14 analysts, rating AT&T a “Moderate Buy” with an average target of $30.94 (range $28–$34), implying just over 20% upside from recent levels. [12]
- Investing.com lists a “Buy” consensus from 24 analysts covering the stock. [13]
Worth noting, not all models agree on upside:
- GuruFocus reports that 27 analysts have an average Street target of $29.48 (about 21% upside from roughly $24.40), but its own proprietary GF Value model estimates fair value around $20.90, implying potential downside versus today’s price. [14]
- By contrast, a fresh DCF valuation from Simply Wall St estimates intrinsic value near $54.63 per share, suggesting AT&T trades at roughly a 55% discount to that fair value. [15]
In short, traditional analyst targets cluster in the high‑$20s to low‑$30s, while valuation models range from low‑$20s to mid‑$50s, underscoring how sensitive the thesis is to assumptions about growth, capital intensity and leverage.
5G, fiber and the DEI‑linked $1.02 billion spectrum deal
A major structural catalyst this month is the FCC approval of AT&T’s $1.02 billion deal to acquire UScellular spectrum licenses. On December 4, Reuters reported that the FCC signed off after AT&T committed to end its diversity, equity and inclusion (DEI) programs, part of a broader push by the Trump administration’s FCC to require carriers to dismantle DEI initiatives as a condition of deal approvals. [16]
Key details:
- The FCC argued the spectrum purchase will enhance AT&T’s network coverage, capacity and performance, especially for 5G customers. [17]
- A letter from AT&T to regulators stated the company “does not and will not have any roles focused on DEI.” [18]
- The Rural Wireless Association opposed the approval, warning it continues a trend of consolidation that may harm competition and raise prices, particularly in rural America. [19]
An Insider Monkey piece ranking AT&T among “11 Cheap NYSE Stocks to Buy Now” highlights the same FCC decision, noting the $1.02 billion price tag, the requirement to end DEI programs, and the rural industry backlash. [20]
Alongside spectrum purchases, AT&T has been pushing an aggressive network build:
- In a 4Q25 Investor News compilation published December 10, the company highlighted milestones such as “AT&T Boosts 5G Capacity Nationwide with New Spectrum,” a nationwide rollout of standalone 5G, and reaching “10 million fiber customers”, along with updates on Open RAN and high‑capacity enterprise connectivity. [21]
These moves reinforce the core bull case: a denser 5G and fiber network should, in theory, support higher ARPU, better customer retention and incremental enterprise revenue over time.
UBS, buybacks and the growth narrative
A new TipRanks article on December 10 underscores the more optimistic side of the Street. UBS analyst John Hodulik maintained a Buy rating on AT&T, citing: [22]
- Management’s reaffirmed multi‑year growth targets,
- Plans for “significant stock buybacks through 2027”,
- Strong performance in the mobility segment with expectations for better‑than‑anticipated EBITDA growth,
- A strategic focus on broadband and convergence, including more fiber and converged customers, and
- Cost savings from copper decommissioning and disciplined capital allocation.
The article notes AT&T shares have slipped about 12% over the last six months, from roughly $27.86 to $24.51, but frames the pullback as an opportunity if management executes on those plans. [23]
Simply Wall St’s DCF work is even more bullish, projecting free cash flow rising to around $24.8 billion by 2035 and arriving at a fair value of $54.63, with the stock trading at an implied 55.1% discount. They also point out that AT&T’s current P/E around 7.8x is below both the telecom industry average (~16.2x) and their own “Fair Ratio” of ~11.4x for the company. [24]
At the same time, investor “narratives” on the platform illustrate how wide the range of views can be: some model fair value nearer $31, others closer to $22, depending on how aggressively they assume fiber‑driven growth and how they price in debt and competition. [25]
Debt, competition and legacy business headwinds
A detailed analysis published via MarketMinute on December 9 paints a more cautious picture of AT&T’s fundamentals: [26]
- Net debt/EBITDA stood at about 3.0x in Q3 2025, with total debt around $139.5 billion. Management aims to reduce leverage to roughly 2.5x over three years, but the sheer size of the debt stack weighs on flexibility and sentiment.
- In the third quarter of 2025, rival T‑Mobile US added about 1 million postpaid phone customers, versus 405,000 for AT&T, while AT&T’s postpaid churn rose to 0.92%, highlighting competitive pressure from aggressive promos.
- AT&T’s legacy business wireline segment continues to shrink, with revenue down 9.3% in Q2 2025 and 7.8% in Q3 2025, forcing heavy investment into modern alternatives like fiber.
- The company’s 2025 profit forecast of $1.97–$2.07 per share initially underwhelmed Wall Street, and while Q3 adjusted EPS met expectations, revenue of $30.71 billion slightly missed consensus.
- The article also notes a roughly 7.8% stock decline over the past six months through December 8, and highlights the tension between funding capex, servicing debt, and returning capital via dividends and share buybacks.
On the balance‑sheet front, AT&T’s own 4Q investor summary points to new credit lines, including a $12 billion amended revolving credit facility and a $17.5 billion delayed‑draw term loan, underscoring the company’s substantial financing needs but also its access to liquidity. [27]
Mexico unit sale rumors: Televisa and Cerberus circle
Another developing storyline is a potential shake‑up in AT&T’s Mexico operations.
Communications Today, citing Bloomberg, reports that Grupo Televisa’s cable arm Izzi is in the final stages of a possible acquisition of AT&T’s Mexico unit, competing with Cerberus Capital Management. AT&T is reportedly seeking more than $2 billion for the business, which held about 18% share of the Mexican mobile market as of March, compared with Telcel’s 64%. [28]
Televisa’s local shares rose as much as 2.2% on the report. AT&T hasn’t publicly confirmed any deal and Televisa told reporters it evaluates many operations and “doesn’t comment on ongoing processes.” [29]
A sale could:
- Free up cash and management focus for the U.S. 5G and fiber build,
- Trim exposure to a highly competitive market dominated by Telcel,
- But also reduce international diversification and growth optionality.
Lawsuit vs T‑Mobile: AI “Easy Switch” tool under fire
On the competitive front, AT&T has taken T‑Mobile US to court over its AI‑powered “Easy Switch” tool, which helps users compare wireless plans.
A December 10 report from Mobile World Live details T‑Mobile’s response: [30]
- AT&T filed suit seeking a temporary restraining order, alleging Easy Switch improperly scraped AT&T customer data to encourage switching.
- T‑Mobile told a federal court that the challenge is moot because it removed the scraping functionality days before AT&T filed its complaint.
- The current version of Easy Switch, launched widely on December 1 after a beta at the Formula 1 Las Vegas Grand Prix, now lets AT&T customers upload a bill or manually enter plan data; T‑Mobile argues AT&T hasn’t alleged this version is unlawful.
- AT&T, in comments to Mobile World Live, said it appreciates that T‑Mobile will “stop recklessly scraping customer data for now” but wants a firm commitment that such tactics won’t be used again.
- An in‑person hearing is set for December 16 in a U.S. district court in Texas.
The case highlights how intensely the big carriers are competing for postpaid subscribers—and the data‑privacy risks that can surface when AI tools are integrated into customer‑acquisition strategies.
Culture, AI and the return‑to‑office controversy
Beyond pure financials, corporate culture is in the spotlight.
In a December 10 story, The Times of India recapped AT&T CEO John Stankey’s comments at the Wall Street Journal CEO Council Summit. Stankey said his “mistake” was moving too slowly on cultural change, not the much‑criticized memo that told employees to return to the office five days a week or seek work elsewhere. [31]
Key points from that coverage:
- Stankey described the memo—aimed at creating a “more market‑based culture” that rewards contribution over tenure—as giving leaders “air cover” to drive change. [32]
- AT&T has since pushed employees to adopt AI tools, tracking who engages with tutorials and education as part of skill‑development metrics. [33]
- The article notes AT&T shares are up more than 21% in 2025, supported by earnings that met expectations in the last two quarters. [34]
While not directly financial, cultural and workforce decisions can impact execution risk, talent retention and, ultimately, long‑term performance.
Data‑breach settlement and legal overhang
The same MarketMinute analysis that highlighted AT&T’s headwinds also flagged the ongoing data‑breach settlement:
- AT&T faces a $177 million settlement tied to major data breaches that exposed customer information; customers have until December 18, 2025 to file claims. [35]
Consumer‑facing explainers on the settlement outline eligibility and payout details, and the story has been widely shared as the deadline approaches. [36]
Financially, the settlement is manageable relative to AT&T’s annual revenue base above $120 billion, but it underscores the company’s cybersecurity and reputational risk, particularly at a time when regulators are paying closer attention to data protection.
Dividend, income appeal and buybacks
AT&T’s dividend remains central to its investor appeal:
- Recent payouts of $0.2775 per share quarterly translate to $1.11 annually, and a yield around 4.5% at current prices. [37]
- Dividend‑focused sites and commentary repeatedly highlight AT&T as a high‑yield telecom with a long history of distributions, albeit at a lower level than before its media spinoffs. [38]
At the same time, management has telegraphed meaningful share buybacks:
- The MarketMinute piece notes plans to repurchase about $4 billion of stock in 2025 and up to $20 billion between 2025 and 2027, assuming free cash flow and leverage targets are met. [39]
Balancing debt reduction, capex, dividends and buybacks is one of the most important strategic trade‑offs for AT&T over the next few years.
Zacks, trend status and what’s priced in
In a separate note titled “AT&T (T) Registers a Bigger Fall Than the Market: Important Facts to Note”, Zacks summarized recent performance and expectations: [40]
- On December 8, AT&T closed at $24.84, down 1.74% that session but still up 1.81% over the prior month, outpacing both its sector and the S&P 500.
- Zacks expects Q4 2025 EPS of $0.49 (down about 9.3% year‑over‑year) on revenue of $32.76 billion (up ~1.4%).
- For full‑year 2025, it projects EPS of $2.06 (‑8.85% YoY) and revenue of $124.96 billion (+2.14% YoY).
- AT&T currently holds a Zacks Rank #3 (Hold), with a forward P/E of 12.28, compared with an industry average of 18.57, and a PEG ratio of 1.48 roughly in line with its wireless peer group.
Zacks continues to highlight AT&T as a trending stock, but with a neutral rating that reflects modest growth expectations and already‑known catalysts. [41]
Earnings and upcoming catalysts
Investors won’t have to wait long for the next major data point:
- AT&T has announced it will release Q4 2025 results on January 28, 2026, an event widely flagged by Reuters, MarketScreener and Zacks. [42]
Key issues to watch into that report and beyond:
- Free cash flow and leverage
- Progress toward the company’s deleveraging target from roughly 3.0x to 2.5x net debt/EBITDA. [43]
- Subscriber and fiber growth
- Whether AT&T can close the gap with T‑Mobile on postpaid net adds while continuing to expand its fiber footprint, which it aims to grow to over 60 million locations by 2030, according to recent commentary. [44]
- Regulatory and legal outcomes
- The December 16 hearing in the T‑Mobile Easy Switch case,
- Market and political reaction to telecoms dismantling DEI programs to win FCC approvals, and
- The data‑breach settlement claims deadline and any follow‑on enforcement. [45]
- Strategic portfolio moves
- Any confirmation or denial of a Mexico unit sale after the Televisa/Cerberus reports. [46]
How the story lines up for investors right now
Putting all the December 10 coverage together, the market’s view of AT&T stock looks something like this:
Positives being emphasized
- A deep 5G and fiber build underpinned by new spectrum and infrastructure investments, including the UScellular licenses and standalone 5G rollout. [47]
- A solid dividend yield (~4.5%) plus planned buybacks, attractive to income and total‑return investors if free cash flow holds up. [48]
- A discount valuation by many measures—low P/E, and in some models an enormous gap to estimated fair value. [49]
- A broad “Buy” consensus from analysts, with average price targets about 20–25% above current levels. [50]
Risks and headwinds being flagged
- High leverage (~3x net debt/EBITDA and ~$140 billion in debt) that must be managed alongside heavy capex and shareholder payouts. [51]
- Tough competition, especially from T‑Mobile in postpaid phones, with churn moving the wrong way and rivals leaning into digital switching tools. [52]
- Structural decline in legacy wireline revenue, requiring massive investment to complete the fiber transition. [53]
- A cluster of legal and regulatory issues—from the data‑breach settlement to the T‑Mobile lawsuit and the political backlash around ending DEI programs—that could affect brand, regulatory risk and future deal‑making.
References
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