AT&T Moves Fiber Asset to Joint Venture as Scotiabank Cuts Price Target
AT&T Inc (NYSE:T) plans to move its Forged Fiber 37 asset into a joint venture. Shares dropped 10.82% to $22.18 today following the news and a price target cut from Scotiabank. The bank lowered its target on the telecommunications company to $26.50 from $27.50 while maintaining a Sector Perform rating, citing long-term disruption risks and valuation pressure connected to SpaceX activity.
The telecommunications provider expects proceeds at closing to lower its net debt, fund future investments, and return capital to shareholders. AT&T Inc will not consolidate the joint venture on its financial statements after the transaction closes. The company also reiterated its second-quarter 2026 outlook and broader capital allocation plan. To trim expenses, the business has brought more work in-house this year, including launching a 38-person legal team called LegalEdge in January to replace external law firms.
Investors will track the regulatory process and execution leading up to the targeted transaction close in the first half of 2027. Market participants will also monitor whether internal efficiency measures and debt reduction efforts offset competitive pressures from satellite technology.
Key points
- AT&T Inc will transfer its Forged Fiber 37 asset into a joint venture, targeting a deal close in the first half of 2027.
- Closing proceeds are expected to reduce net debt, fund new investments, and return capital to shareholders.
- Scotiabank lowered its price target on AT&T Inc from $27.50 to $26.50 due to long-term disruption risks linked to SpaceX.
- AT&T Inc reiterated its second-quarter 2026 financial outlook and plans not to consolidate the joint venture after closing.
Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org
How we writeDisclaimerQuestions and answers
Why did Scotiabank cut AT&T's price target?
Scotiabank reduced its price target on AT&T Inc to $26.50 from $27.50 because of higher long-term disruption risk and valuation pressure tied to SpaceX activity.
What will AT&T do with the proceeds from the Forged Fiber 37 joint venture?
AT&T Inc expects closing proceeds from the joint venture to reduce its net debt, fund future investments, and return capital to shareholders.
When is the AT&T joint venture deal expected to close?
The joint venture transaction for Forged Fiber 37 is targeted to close in the first half of 2027.