AT&T's (T) fiber expansion provides a long-term growth trajectory

and helps insulate the wireless segment from competitive pressures, RBC said in a note Wednesday.

The analysts said that the company reaffirmed its plan to reach nearly 60 million fiber locations by 2030, including Lumen's footprint and wholesale partners. The strategy focuses on building fiber, signing up broadband customers, and cross-selling wireless services.

Management also disclosed that 42% of mobility customers overlap with fiber and 43.4% with fixed wireless access. About 21% of consumer postpaid phone subscribers are estimated to be bundled with broadband, and that figure could exceed 50% by 2030, the analysts said.

The company is also accelerating the shutdown of its copper network and targeting $4 billion in cost savings by 2028, the analysts said. Wireless and fiber now make up 96% of the business, and segment EBITDA is expected to grow about 6% annually through 2028 as legacy declines fade.

RBC raised its estimates slightly for EBITDA and free cash flow to $48 billion and $18.2 billion, respectively, for 2026, and $49.9 billion and $19.4 billion for 2027.

RBC raised its price target on AT&T to $31 from $29 and kept its outperform rating.

Price: 29.09, Change: +0.62, Percent Change: +2.16