JPMorgan analysts raised their rating on AT&T (NYSE:T) from Neutral to Overweight, also increasing the price target from $18.00 to $21.00.

The upgrade is based on AT&T's proven track record of consistent performance in its wireless and broadband divisions. The analysts highlighted the company's potential for sustained long-term growth, particularly in the broadband sector, thanks to its ongoing fiber optic network expansion and the exploration of new opportunities both within and beyond its current markets.

The analysts noted that AT&T has completed its period of heightened capital expenditures related to the deployment of 5G technology and anticipates a stable generation of free cash flow (FCF) moving forward. This FCF is expected to support ongoing dividend payments and facilitate debt reduction.

The analysts project AT&T's Mobility segment to experience robust growth, driven by both an increase in postpaid phone subscriptions and Average Revenue Per User (ARPU) for service revenue. They forecast a service revenue growth of 3.0% in 2024 and an EBITDA growth of 5.1%.