Goldman Sachs predicts strong growth for AT&T

Goldman Sachs is optimistic about AT&T's future. The investment bank recently confirmed its buy rating for the mobile service provider. Analyst James Schneider has set a price target of $29 for AT&T, indicating an expected rise of about 8% from its current price of $26.96. This analysis does not include AT&T's dividend yield of 4.1%. So far this year, AT&T's shares have increased by 21%. Over the past year, they have delivered a remarkable return of more than 60%. AT&T's stock also shows less volatility compared to the overall market, with a beta of just 0.64. Schneider believes that AT&T will benefit from strong subscriber growth and customers paying more for services. This should lead analysts to raise profit estimates for AT&T in the coming years. Schneider is confident that AT&T's fundamentals will allow the stock to achieve double-digit annual returns. He believes the stock could eventually reach $40, representing a potential increase of 48%. The high dividend yield is a significant attraction for investors. Schneider highlighted several factors that make AT&T appealing, such as its market share growth, stability, and low volatility. He also noted that AT&T is advancing its fiber network, which should boost broadband revenue starting in 2028.