AT&T Inc. (NYSE:T) is one of the top telecom stocks to invest in. Goldman Sachs lowered its price target to $29 from $33, maintaining a Buy rating. The firm expects AT&T to see an 8% free cash flow CAGR through 2029, driven by growing fiber transmissions and improved Business Wireline trends.

Goldman Sachs highlights AT&T’s leading capital expenditure and expanding fiber footprint, potentially strengthened by the Lumen Mass Markets acquisition. This should enhance convergence benefits and prepare the network for increased AI-driven traffic.

However, Wolfe Research downgraded AT&T to Peer Perform from Outperform on December 15, citing near-term risks due to market conditions. Pricing adjustments may impact postpaid phone ARPU growth and subscriber numbers, projecting only 0.3% year-over-year growth in 2026.

AT&T offers diverse wireless communication services to various customer groups. While it presents investment potential, other AI stocks may offer greater upside with less downside risk. For an undervalued AI stock benefiting from tariffs and onshoring trends, check out our free report.

If you’re interested in more investment opportunities, explore the 10 Best Magic Formula Stocks for 2025 and the 10 Best Retirement Stocks to Buy According to Hedge Funds. No disclosures. This article was originally published on Insider Monkey.

Read more at Yahoo Finance: AT&T (T) Positioned for Higher Share Buybacks Through 2029, Goldman Sachs Maintains Buy