TLDRJ.P. Morgan maintains AT&T as a top pick, highlighting fiber and 5G infrastructure along with favorable cost structure versus competitorsFirst-quarter results exceeded expectations with earnings per share of $0.57 against $0.55 consensus and revenue of $31.51 billionFiber-wireless convergence rate reached 45% among advanced home internet subscribers, representing a 3-point annual increaseAnalyst Sebastiano Petti lifted 2026 EBITDA projection to $48.1 billion while maintaining $33 stock price targetShares have gained approximately 5% year-to-date with the stock offering a dividend yield near 4.2%AT&T (T) stock began Monday’s trading session at $26.15, reflecting a gain of roughly 5% for the year through the end of last week. This performance has closely mirrored the S&P 500 index, which posted a 5.8% advance during the identical timeframe.AT&T Inc., TJ.P. Morgan reaffirmed AT&T’s position on its top picks roster Monday, with Sebastiano Petti, the firm’s analyst, emphasizing the telecommunications giant’s fiber and 5G infrastructure investments alongside its favorable cost dynamics compared to T-Mobile and Verizon.“We believe AT&T’s asset mix, strengthened by years of investment in fiber and 5G, and its marginal cost relative to competitors, positions the company well to drive share gains,” Petti stated in his note.AT&T unveiled its first-quarter financial results on April 22nd. The telecommunications company delivered earnings per share of $0.57, surpassing the analyst consensus estimate of $0.55. Revenue totaled $31.51 billion, exceeding the $31.29 billion projection and marking a 2.9% year-over-year increase.Looking ahead to fiscal 2026, AT&T provided earnings guidance ranging from $2.25 to $2.35 per share. Wall Street analysts currently forecast $2.31 for the full year.A particularly noteworthy metric that captured Petti’s attention: 45% of the company’s advanced home internet subscriber base also maintains AT&T wireless service. This convergence rate represents a three-percentage-point climb from the prior year and doesn’t include new fiber customers acquired through the Lumen transaction.Petti interprets this data as validation that AT&T’s convergence approach is delivering results — creating integrated packages combining 5G, fiber, and Wi-Fi services to enhance customer retention.EBITDA and Cash Flow OutlookIn response to the quarterly performance, Petti elevated his 2026 adjusted EBITDA forecast to $48.1 billion, incorporating anticipated expansion in converged customer segments, recent pricing adjustments, and the Lumen acquisition’s impact.He simultaneously increased his second-quarter net postpaid phone customer addition forecast to 330,000 from his previous 320,000 estimate. His Overweight investment rating and $33 year-end price objective remain intact.Petti anticipates EBITDA and free cash flow per share will advance at compound annual growth rates of 4% and 12%, respectively, through 2028’s conclusion.AT&T distributed a quarterly dividend of $0.2775 per share on May 1st, translating to an annualized yield of approximately 4.2%. The company’s payout ratio currently stands at 37.25%.Analyst Ratings and Institutional ActivityThe overall Wall Street sentiment leans positive. Among 21 analysts monitored by MarketBeat, one maintains a Strong Buy recommendation, thirteen rate it a Buy, and seven hold a Hold rating. The average target price across analysts is $30.55.Citigroup elevated its price target to $31.50 with a Buy recommendation in March. Scotiabank reduced its target to $31.00 in late April while maintaining a Sector Perform rating.Regarding institutional investor activity, Truist Financial expanded its AT&T holdings by 3% during the fourth quarter, purchasing 163,766 additional shares to reach a total position of 5,694,478 shares valued at approximately $141.45 million. Multiple other institutional investors similarly increased their stakes during the third quarter.AT&T’s 52-week trading range extends from $22.95 to $29.79. The stock’s 50-day moving average stands at $27.52, while the 200-day moving average sits at $26.05.Separately, AT&T introduced new cybersecurity solutions targeting small business customers this week, including Dynamic Defense available on AT&T Business Fiber services.The post J.P. Morgan Retains AT&T (T) Stock as Top Pick Amid Fiber and 5G Expansion appeared first on Blockonomi.