AT&T Inc. shares retreated Friday afternoon, declining 0.5% to $28.66, ending a three-session winning streak. The stock traded between $28.42 and $28.84 during the session.
This pullback occurred despite a bullish move from RBC Capital Markets, which on Thursday raised its price target on AT&T to $31 from $29, maintaining an Outperform rating. Analyst Jonathan Atkin highlighted the company's expanding fiber network as a long-term growth driver and noted that a faster phase-out of legacy services is strengthening free cash flow.
Telecom peers showed mixed performance. Verizon Communications shares slipped 0.9%, while T-Mobile US advanced 1.5%. The broader market was largely flat, with the SPDR S&P 500 ETF dipping 0.1%.
Investors are now turning their attention to the release of minutes from the Federal Reserve's late-January policy meeting, scheduled for Wednesday afternoon. The details could influence interest rate expectations, a key factor for income-oriented sectors like telecommunications.
AT&T recently provided financial guidance, projecting adjusted earnings between $2.25 and $2.35 per share for 2026. The company also targets free cash flow exceeding $21 billion by 2028, underpinned by its ongoing investments in 5G and fiber infrastructure.
Management has signaled a change in financial reporting, with plans to begin disclosing domestic wireless and fiber results separately from legacy operations starting with first-quarter results. However, challenges remain, including potential wireless pricing competition and the significant capital required for network expansion.
