AT&T Inc.'s T stock could offer "healthy double-digit annualized returns," driven by upside to Street estimates, according to Goldman Sachs.

The AT&T Analyst: Analyst James Schneider maintained a Buy rating and price target of $29.

The AT&T Thesis: The company has a strong position in the current volatile market environment, backed up share gains in the telecom market, lack of direct connection to AI, and defensive business characteristics, Schneider said in the Tuesday note.

Check out other analyst stock ratings.

The analyst cited three key factors supporting his positive outlook:

• Solid subscriber growth in the wireless market and customers moving up the pricing curve is likely to drive upside to multi-year estimates.
• "AT&T is the most aggressive builder of fiber in the United States today, which should drive accelerating broadband revenue growth while the company stems legacy copper losses (DSL/U-verse)," he wrote. Broadband revenue growth is expected to accelerate "notably in 2028 and beyond."
• The FCC's efforts to streamline copper decommissioning could expedite the transition from copper to fiber, which is "an incremental positive for AT&T as it could accelerate its ability to execute on its $6 billion cost reductions," Schneider stated.

T Price Action: Shares of AT&T were up 1.85% to $27.46 at the time of publication on Tuesday.

Read More:

• BT Group In Preliminary Talks With AT&T, Orange Over International Tie-Up Possibilities: Report

Photo: Shutterstock