01:14 PM EDT, 07/25/2024 (MT Newswires) -- AT&T's ( T ) Q2 results indicate sustainable earnings before interest, taxes, depreciation and amortization along with free cash flow growth, underpinning a "bullish stance," UBS Securities said Wednesday in a report.

EBITDA growth of 3% will be supported by wireless and fiber subscription gains in H2 and an increase in upgrade rates, UBS said.

UBS's free cash flow estimate of $17.8 billion is at the higher end of the company's guidance of $17 billion to $18 billion.

"We expect FCF to grow again in 2025 as EBITDA grows 2.6%," UBS said. "Despite being valued in-line with declining telecom assets, we see the path to sustained growth."

UBS maintained its buy rating on AT&T ( T ) stock with a 12-month price target of $24.

On Wednesday, AT&T ( T ) maintained its full-year earnings outlook and reported adding more postpaid phone subscribers than expected in Q2.

The company's shares rose 0.7% in recent trading Thursday.

Price: 19.30, Change: +0.14, Percent Change: +0.74