Investment bank JPMorgan has officially included AT&T (T) in its curated list of top stock picks for 2026. This selection, comprising 47 companies across various sectors, aims to highlight firms expected to deliver significant returns in the coming year. Notably, AT&T stands out as the only representative from the telecommunications sector.
JPMorgan has assigned AT&T an “Overweight” rating, projecting a one-year price target of $33 per share. This target suggests a potential upside of approximately 35% from the stock’s recent trading levels. Currently, AT&T offers a forward dividend yield of around 4.5%, positioning it as one of the highest-yielding large-cap stocks in the market.
Despite an 8% increase in stock value over the past year, AT&T has faced challenges, with shares declining by 18% from their peak of $29.79 in September. This downturn has led to investor speculation about whether it represents a buying opportunity or signals underlying issues.
AT&T’s Market Position and Performance
AT&T is one of America’s largest telecommunications providers, offering wireless, broadband, and fiber-optic services to over 100 million customers. The company is headquartered in Dallas, Texas, and operates the largest wireless network in the country by coverage. AT&T has been actively expanding its fiber-to-the-home services as part of its ongoing fiber deployment initiative.
Over the last twelve months, AT&T’s stock has shown resilience, reflecting steady execution and subscriber growth across its wireless and broadband segments. However, the recent selloff can be attributed to several factors, including increased promotional activity within the wireless market, which has pressured average revenue per user (ARPU). Additionally, there are concerns about potential subscriber churn due to economic uncertainties and a market shift away from high-yield dividend stocks as interest rates remain elevated.
Despite these challenges, AT&T has demonstrated operational strength by maintaining consistent free cash flow and advancing its strategic shift towards higher-margin fiber and 5G services.
Analyst Insights on Future Growth
Sebastiano Petti, a JPMorgan analyst covering the telecommunications sector, remains optimistic about AT&T’s future. In recent investor communications, Petti highlighted several key factors influencing his “Overweight” rating and $33 price target. He noted AT&T’s strong competitive position in postpaid wireless, where the company has been gaining market share through enhancements in customer experience and network quality.
Petti also emphasized the momentum in AT&T’s fiber business, which benefits from increasing penetration rates and a robust demand for high-speed internet. He pointed out the importance of AT&T’s convergence strategy, which integrates wireless and wireline services, as a crucial differentiator that could help the company capture more customer spending.
Moreover, Petti mentioned that AT&T’s capital spending is expected to moderate in the upcoming years. This shift should free up additional cash flow for debt reduction and support for dividends. These factors, combined with a disciplined approach to promotions and cost management, enhance JPMorgan’s confidence that AT&T can achieve solid EBITDA growth and sustained shareholder returns through 2026 and beyond.
Overall, the consensus among Wall Street analysts regarding AT&T remains positive, with a consensus “Moderate Buy” rating. Currently, of the 28 analysts covering the stock, 15 have issued a “Strong Buy,” 3 a “Buy,” and 10 a “Hold” rating. The lack of significant downgrades and only modest adjustments to price targets following quarterly earnings reports reinforce this positive outlook.
Analysts have set a mean price target of $29.68 per share, indicating a potential 20% upside from its current level of $24.60. While this projection is slightly below JPMorgan’s more optimistic $33 forecast, it still signals notable appreciation potential.
The broad consensus among analysts suggests that AT&T’s current valuation, coupled with its high dividend yield and strategic advancements, presents an attractive risk-reward profile for patient investors.
