Does AT&T's Rapid 5G Mid-Band Expansion Change the Bull Case for AT&T (T)?

• Earlier this week, AT&T announced the rapid nationwide deployment of mid-band spectrum acquired from EchoStar, upgrading nearly 23,000 cell sites to deliver up to 80% faster 5G download speeds and expanded connectivity for mobility and home internet customers in over 5,300 cities across 48 states.
• This large-scale integration enhances AT&T's network leadership and positions the company for capital-efficient long-term growth by increasing its ability to acquire and retain customers who subscribe to both wireless and home internet services.
• Next, we'll explore how coast-to-coast 5G enhancements from newly integrated spectrum may influence AT&T’s investment narrative.

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AT&T Investment Narrative Recap

To be an AT&T shareholder, you'd need confidence that investments in network upgrades and convergence will translate into recurring growth, higher-value customer relationships, and improved margins. The rapid mid-band spectrum deployment directly supports the convergence catalyst by expanding high-speed 5G and home connectivity. However, the biggest near-term risk, persistent wireless churn in a fiercely competitive environment, remains a significant concern despite these network improvements, and the impact on churn is still to be seen.

The collaboration with Tech Mahindra to license AT&T’s automated 5G network testing platforms is particularly relevant, as it demonstrates ongoing investment in ensuring robust, reliable network performance. Reliable infrastructure is key to minimizing customer churn and directly underpins the short-term growth catalysts around 5G expansion and converged offerings.

But investors should also be aware that while AT&T’s network reach is advancing rapidly, the pressure from aggressive competitor pricing could still threaten subscriber retention over the next few quarters…

Read the full narrative on AT&T (it's free!)

AT&T's narrative projects $130.6 billion revenue and $17.0 billion earnings by 2028. This requires 1.7% yearly revenue growth and a $4.3 billion earnings increase from $12.7 billion currently.

Uncover how AT&T's forecasts yield a $30.99 fair value, a 20% upside to its current price.

Exploring Other Perspectives

Some of the most optimistic analysts saw AT&T's revenue hitting US$130.2 billion in three years, with profits reaching US$17.6 billion. If you agree with them, the 5G spectrum boost could speed up that trajectory and help improve margins. These views are far more positive than consensus, so make sure you weigh both sides before deciding what growth story you believe best fits AT&T’s future.

Explore 14 other fair value estimates on AT&T - why the stock might be worth over 2x more than the current price!

Build Your Own AT&T Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free AT&T research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AT&T's overall financial health at a glance.

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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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