AT&T Maintains Top Pick Status at J.P. Morgan on Fiber and 5G Strengths

J.P. Morgan reaffirmed AT&T as a top pick, highlighting the telecom giant's strategic investments in fiber and 5G infrastructure. Analyst Sebastiano Petti emphasized AT&T's competitive cost advantages over rivals T-Mobile and Verizon, positioning the company for market share gains.

AT&T's first-quarter earnings surpassed expectations, with EPS of $0.57 against a $0.55 consensus and revenue of $31.51 billion, a 2.9% year-over-year increase. The company's guidance for 2026 EPS stands at $2.25 to $2.35, aligning closely with analyst projections.

Notably, 45% of AT&T's advanced home internet customers now bundle wireless services, reflecting a 3-point annual increase in cross-selling penetration. J.P. Morgan raised its 2026 EBITDA estimate to $48.1 billion while maintaining a $33 price target.

The stock has gained 5% year-to-date, mirroring the S&P 500's performance, with its dividend yield remaining attractive at 4.2%. Monday's opening price of $26.15 continues this upward trajectory.