Morgan Stanley cuts target for AT&T stock to USD 25.00 from USD 28.00

Published on 10/26/2026 at 16:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Revenue rose 5.30 percent in the third quarter. AT&T stock costs EUR 18.84 on October 26, 2026, plus 0.91 percent versus the Xetra close.

Analyst target and quarterly growth

Morgan Stanley cut its AT&T target from USD 28.00 to USD 25.00 on October 22, 2026.
Third-quarter revenue increased 5.30 percent to USD 32.30 billion on October 21, 2026.
AT&T stock costs EUR 18.84 at Lang & Schwarz on October 26, 2026 at 4:10 p.m. CEST, 0.91 percent above the Xetra close.

AT&T Inc., US00206R1023, Illustration mit AI erstellt.

AT&T Inc. (US00206R1023) faces a lower analyst target after Morgan Stanley cut its view from USD 28.00 to USD 25.00 on October 22, 2026, according to MarketScreener. AT&T reported third-quarter revenue of USD 32.30 billion, up 5.30 percent year over year, in its October 21, 2026 release. The stock was trading at EUR 18.84 at Lang & Schwarz on October 26, 2026 at 4:10 p.m. CEST, up 0.91 percent versus the Xetra close of October 23, 2026 at EUR 18.67.

Revenue growth meets higher guidance

The latest quarter combined stronger operating trends with a sharp accounting drag. According to AT&T, adjusted earnings per share reached USD 0.65 in the third quarter, versus USD 0.54 a year earlier, while adjusted EBITDA rose 5.40 percent to USD 12.50 billion. The company raised its 2026 adjusted earnings-per-share outlook to USD 2.40 from a prior range of USD 2.25 to USD 2.35.

Reported diluted earnings per share were USD 0.13, compared with USD 1.29 in the year-ago quarter. AT&T said the result included a USD 2.60 billion non-cash impairment charge tied to its held-for-sale Mexico wireless business and employee separation charges.

Stock sits above its yearly low

AT&T's primary listing is on the NYSE, where the stock was last quoted at USD 21.11 on October 26, 2026 at 11:20 a.m. EDT. The quote stood 6.13 percent above its USD 19.89 52-week low and 28.29 percent below its USD 29.44 high. Trading volume was 16,283,923 shares at that time.

Valuation and capital returns

AT&T had a market capitalization of USD 142.2 billion and a trailing price-to-earnings ratio of 11.48 on October 26, 2026. Its dividend yield was 5.00 percent, while the company said it plans to maintain an annualized common-stock dividend of USD 1.11 per share.

AT&T also expects 2026 capital investment of USD 23.00 billion to USD 24.00 billion. The company reported USD 5.00 billion in third-quarter free cash flow and USD 149.80 billion in net debt as of September 30, 2026.

Comparison with peers

AT&T: up 0.91 percent versus the Xetra close, P/E 11.48, market capitalization USD 142.2 billion.

Verizon Communications (NYSE, USD): down 2.04 percent, P/E 11.41, market capitalization USD 181.8 billion.

T-Mobile US (NYSE, USD): up 0.10 percent, P/E 15.37, market capitalization USD 157.3 billion.

Target cut sets the market question

The Morgan Stanley target of USD 25.00 is 18.43 percent above the NYSE quote of USD 21.11 on October 26, 2026. For investors, the contrast is clear: AT&T is expanding advanced-connectivity revenue while the latest quarter still carries a large Mexico-related charge.

The further course of trading is shown by the continuously updated real-time quote of AT&T stock.