Morgan Stanley Maintains AT&T Inc.

Morgan Stanley kept an Overweight on AT&T Inc. - Corporate Bond (TBB) on Dec. 10, 2025, with an average one‑year price target of $26.41 as of Dec. 7 (range $16.85–$31.36), implying roughly 18.6% upside from the $22.26 close; the report cites projected annual revenue of 128,044MM (up 2.86%) and projected non‑GAAP EPS of 2.63. Institutional interest is modestly up—27 funds now hold TBB (two more owners, +8%), total institutional shares rose 2.91% to 10,639K and average portfolio weight climbed to 0.33% (+3.7%)—but several large preferred‑bond ETFs (PFF, PGX, PFXF, PFFD, PSK) trimmed their TBB allocations over the quarter, signaling mixed flows and potential rebalancing despite analyst optimism.

Analysis

Morgan Stanley maintained an Overweight on AT&T Inc. - Corporate Bond (TBB) on December 10, 2025, with an average one‑year price target of $26.41 as of December 7 (range $16.85–$31.36), implying approximately 18.63% upside from the last close of $22.26. The report cites projected annual revenue of 128,044MM (up 2.86%) and projected non‑GAAP EPS of 2.63, providing the fundamental baseline underpinning the analyst view.

Institutional positioning is modestly stronger: 27 funds now report positions in TBB (up two owners, +8%), total institutional shares rose 2.91% to 10,639K, and average portfolio weight increased to 0.33% (+3.7%). Offsetting that, large preferred‑security ETFs trimmed TBB allocations across the quarter (PFF -8.98% to 4,187K shares, PGX -5.88% to 2,025K, PFXF -12.13% to 1,619K, among others), signaling mixed demand and quarter‑end rebalancing rather than unanimous buy conviction.

The sentiment signals are mildly positive (score ~0.28) and market impact is limited, so upside depends on spread compression or delivery versus the modest revenue/EPS projections. Key near‑term risks are continued ETF outflows or wider preferred credit spreads; monitor fund flows and results relative to the stated projections as primary drivers of TBB price performance.

Key Decisions for Investors

• Consider a cautious tactical overweight in TBB given Morgan Stanley's Overweight and ~18.6% one‑year target, but size the position conservatively because ETF deallocations indicate mixed demand
• Monitor ETF holdings and institutional ownership trends (notably PFF, PGX, PFXF) and upcoming revenue/EPS prints; reduce exposure or hedge if outflows accelerate or results miss projections
• If positioning for spread tightening, implement position sizing limits or use credit‑spread hedges/put protection and set a re‑evaluation trigger if TBB fails to approach the $26 target or institutional weight falls materially