AT&T’s 5G Expansion: How New Spectrum Integration Could Impact Valuation and Growth Prospects

AT&T (NYSE:T) has made waves by rapidly integrating mid-band spectrum acquired from EchoStar. The company has added this spectrum to nearly 23,000 cell sites across 48 states. This move immediately expands 5G capacity and accelerates network speeds nationwide.

See our latest analysis for AT&T.

AT&T’s latest move with the EchoStar spectrum comes as momentum has been building. The stock’s 13.1% share price return year-to-date and 15.9% total shareholder return over the past year highlight renewed investor confidence after recent gains and a solid longer-term trajectory.

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With the share price rallying and 5G upgrades accelerating, the real question is whether AT&T remains undervalued after these gains, or if investors have already accounted for the company’s future growth potential in the current price.

Most Popular Narrative: 16.7% Undervalued

According to the widely followed narrative, AT&T’s estimated fair value stands notably higher than its latest closing price of $25.82. Analysts appear optimistic about the company’s capacity to outperform its current market valuation, setting the stage for further examination of what drives this outlook.

Accelerated investments in 5G and fiber infrastructure, supported by recent pro-investment legislation and tax savings, are expanding AT&T's addressable market and improving its ability to capture growing mobile data, video streaming, IoT, and enterprise connectivity demand. This directly fuels recurring revenue and future topline growth. The push toward network convergence (fiber plus 5G) is yielding higher-value, lower-churn subscriber relationships, increasing ARPU and enhancing customer lifetime value. This supports sustainable improvements in net margins and earnings.

Read the complete narrative.

Curious what assumptions make this fair value possible? One underlying driver is a projected leap in earnings, supported by margin expansion and bold estimates for subscriber growth. The narrative’s full story reveals which forward-looking numbers justify this premium. Don’t just guess; find out what could tip AT&T’s valuation even higher.

Result: Fair Value of $30.99 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising competition and lingering declines in legacy business lines could pressure AT&T’s margins. This may challenge the optimism underpinning analysts’ valuation targets.

Find out about the key risks to this AT&T narrative.

Build Your Own AT&T Narrative

If you have a different perspective or want to dig into the numbers yourself, it’s easy to craft your own narrative in just a few minutes. Do it your way

A great starting point for your AT&T research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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