BT Group In Preliminary Talks With AT&T, Orange Over International Tie-Up Possibilities: Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 21 2025
0mins
Should l Buy T?
Source: Benzinga
BT Group's Partnership Discussions: BT Group has approached AT&T and Orange for potential partnerships to enhance its international business, although discussions are in early stages with no guaranteed outcomes.
Recent Business Performance: In its latest trading update, BT reported steady progress in cost transformation and operational efficiency, alongside a stable core UK revenue, while also announcing the appointment of Jon James as CEO of BT Business.
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Analyst Views on T
Wall Street analysts forecast T stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for T is 28.27 USD with a low forecast of 20.00 USD and a high forecast of 33.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 27.130
Low
20.00
Averages
28.27
High
33.00
Current: 27.130
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- User Growth Potential: The anticipated addition of 8 million users will increase AT&T's broadband customer base from 10.6 million to 13.6 million, representing a 30% growth, providing a new revenue source and growth momentum amid a saturated wireless market.
- Earnings Outlook Improvement: The CFO indicated during the earnings call that adjusted EPS is expected to range between $2.25 and $2.35 in 2026, with a projected double-digit CAGR through 2028, instilling confidence in investors, especially in the current market environment.
- Enhanced Dividend Payment Capacity: With a payout ratio slightly above 50%, the upcoming profit improvements will bolster AT&T's ability to maintain dividend payments and may pave the way for the resumption of annual dividend increases that were suspended in 2022.
See More
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- Fiber Expansion: AT&T plans to increase its fiber service coverage from 32 million to 40 million customer locations by the end of 2026, representing a 25% year-over-year growth that will significantly enhance its market share and competitive position.
- Customer Growth Potential: The addition of 8 million new users is expected to boost AT&T's fiber customer base from 10.6 million to 13.6 million, translating to a 30% increase that could generate nearly $3 billion in annual revenue, alleviating pressures from a saturated wireless market.
- Earnings Outlook Improvement: The CFO projects adjusted EPS to range between $2.25 and $2.35 in 2026, with a double-digit CAGR expected over the next three years, indicating growth potential even in a highly competitive market.
- Dividend Payment Capacity Enhancement: With improving profits, AT&T's dividend payout ratio is slightly above 50%, which may allow for the resumption of annual dividend increases that were suspended in 2022, attracting more income-focused investors.
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- Customer Growth Potential: The addition of 8 million new users is expected to boost broadband customers from 10.6 million to 13.6 million, a 30% increase that will further drive revenue, especially given the saturation in the wireless market.
- Revenue Expectations: With fiber customers averaging $73 per month, this could translate into nearly $3 billion in additional annual revenue, strengthening AT&T's profitability and ability to sustain dividend payments.
- Profitability Outlook: The CFO projects adjusted EPS to be in the range of $2.25 to $2.35 by 2026, with a double-digit CAGR expected over the next three years, indicating growth potential for the company in a highly saturated market.
See More
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- Debt Load Reduction: Following a nearly 50% dividend cut in 2022, AT&T has reduced its total debt and leverage, enabling a successful return of $12 billion in 2025, further freeing up funds for shareholder returns.
- Stock Price Surge: After announcing the return plan, AT&T's stock price surged 15% in just five days, reflecting market optimism about its future financial health, although current price-to-earnings and price-to-sales ratios are above their five-year averages.
- Investor Considerations: While the 4% dividend yield is attractive, the lack of dividend growth may lead many investors to seek other opportunities with better growth potential, particularly for those focused on growth investments.
See More
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- Dividend Cut Impact: AT&T cut its dividend by nearly 50% in 2022 following the WarnerMedia spinoff, aiming to alleviate a heavy debt burden and set the stage for future shareholder returns.
- Future Return Plans: The company plans to return up to $45 billion in cash to investors between 2026 and 2028, building on the $12 billion returned through dividends and stock buybacks in 2025.
- Financial Improvement: After four years, AT&T has reduced its total debt and leverage, allowing for increased shareholder returns in the coming years, although the board currently has no plans to raise the dividend.
- Investment Attractiveness Analysis: While AT&T's dividend yield stands at 4.09%, the lack of dividend growth diminishes its appeal to dividend investors, and its current price-to-earnings and price-to-sales ratios exceed five-year averages, making it less attractive for value investors.
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