AT&T (T -0.16%) stock has been a strong performer, surging 64% over the last year. But Tigress Financial analyst Ivan Feinseth sees more upside following AT&T's first-quarter earnings report.

The analyst recently maintained a buy rating on the shares and raised the firm's price target from $32 to $34, implying 23% upside over the current $27.71 share price. Can investors expect the stock to hit the analyst's price target over the next 12 months?

Is AT&T stock a buy?

AT&T has been outperforming the competition, and that trend continued in the first quarter. It reported 324,000 postpaid phone net adds, which refers to the monthly bills customers pay to use their phone. It also reported a healthy postpaid churn rate of 0.83%, indicating relatively low cancellations.

It is having success cross-selling its fiber internet service, with over 40% of AT&T Fiber households also using the company's wireless service. Overall, revenue from fiber broadband grew 19% year over year in Q1.

Competition picked up in the quarter, but AT&T's churn rate shows it is not having a problem signing up customers right now. Management credits the momentum to a new commitment to delivering quality service and attractive offers, which it refers to as the AT&T Guarantee. This reflects the investment the company has made in its fiber buildout and upgrading its network connectivity.

If AT&T continues to report solid financial results like Q1, the stock could head toward the analyst's price target this year. But there are risks to watch for, such as the possibility of an economic downturn and a sudden shift in the competitive landscape if other wireless service providers get more aggressive with promotional offers.

AT&T stock also trades at 13 times 2025 earnings, which is noticeably more expensive than Verizon Communications' 9 times forward earnings multiple. However, it's probably worth a premium, since AT&T is adding more postpaid phone customers, generating a superior cash-flow margin, and growing revenue faster than Verizon.