AT&T is now on Citi’s positive catalyst watch

Investing.com — AT&T Inc. has been added to Citi’s positive catalyst watch list, with analysts expressing optimism ahead of the company’s upcoming analyst meeting on December 3. 

Citi noted that AT&T (NYSE:)’s solid third-quarter results demonstrate it is on track to meet its full-year guidance, positioning the company for favorable momentum heading into the event.

“We believe the December analyst meeting could be a potentially positive catalyst,” Citi wrote, as the company may offer new insights into its “multi-year strategy, financial prospects, and capital allocation.” 

Citi expects AT&T to maintain the current pace of its fiber expansion and potentially announce a multi-year share repurchase program.

The firm also highlighted that AT&T will likely retain financial flexibility to pursue future spectrum acquisitions and consider expanding its fiber footprint through inorganic growth opportunities. Citi emphasized that these developments could strengthen investor confidence and help sustain AT&T’s growth trajectory.

Citi remains bullish on AT&T, reaffirming its Buy rating and calling it their “top-rank pick within our coverage.” 

They expect the stock to “trade favorably into the event,” with potential catalysts such as improved financial visibility and strategic updates contributing to the positive outlook.

Citi also adjusted its model following AT&T’s third-quarter performance and the pending divestiture of DirecTV, which is expected to close by the end of 2025.

AT&T’s ability to deliver strong results while executing on its strategic priorities is a key reason why Citi believes the upcoming analyst meeting could be a turning point.