AT&T (NYSE: T) has earned a top recommendation from KeyBanc analyst Brandon Nispel, who assigned the telecom giant an Overweight rating alongside a $36 price target.
Nispel also issued an Overweight rating on T-Mobile (NASDAQ: TMUS) with a $250 price target, signaling broad confidence in select wireless carriers heading into the second half of 2026.
Verizon (NYSE: VZ) was not among the upgrades, with KeyBanc maintaining only a Sector Weight rating on the carrier, reflecting a more cautious stance on that name.
The upgrades were driven by attractive valuations and improving growth prospects across the wireless sector, even as competitive concerns around Starlink continue to linger in the background.
The three major wireless carriers currently trade at an average of 6.6 times EV/EBITDA and 11 times price-to-earnings, both figures sitting below their respective three-year historical averages.
KeyBanc expects the three carriers to deliver nearly 8% EBITDA growth in 2026, followed by more than 5% growth in 2027, reflecting a durable and improving earnings trajectory.
That growth is expected to be fueled by higher average revenue per user, lower churn, reduced upgrade costs, and continued broadband market share gains across the sector.
AT&T’s strong first-quarter 2026 results helped cement its status as a top pick, with the company posting adjusted earnings per share of $0.57, beating analyst expectations by a meaningful margin.
Revenue climbed 2.9% to $31.5 billion in the quarter, driven by strong wireless and fiber performance, with 294,000 postpaid phone net adds and 584,000 new internet subscribers added.
Wall Street’s broader view on AT&T remains constructive, with 29 analysts tracking the stock at a consensus rating of “Moderate Buy” and a mean price target of $28.97, implying roughly 11.9% upside from current levels.
