BNP Paribas Upgrade Drives Bullish Options Shift at AT&T

BNP Paribas lifted T to Outperform on September 21, raising its price target from $26 to $30. Options traders responded fast. The put-call ratio has dropped to 0.69 — nearly two standard deviations below its 20-day mean.

Analyst Conviction Is Building

Sam McHugh at BNP Paribas wasn't the only one moving higher. Wolfe Research upgraded AT&T to Outperform in July, setting a $29 target. Morgan Stanley lifted its target from $25 to $27 while maintaining Overweight. The consensus now sits at Buy, with a mean price target of $29.01 — implying roughly 14% upside from the current $25.45 close.

TD Cowen is the outlier, holding at Hold with the highest target on the Street at $33. Wells Fargo remains at Underweight with a $20 target. The range is wide. But the direction of recent moves skews constructive.

Options Market Confirms the Shift

The PCR stood at 0.77 as recently as September 18. It now sits at 0.69. That's a sharp move in less than a week. The 20-day mean is 0.74. At nearly two standard deviations below that mean, call buying is clearly outpacing puts.

The 52-week PCR low is 0.49. There is room to run lower if sentiment continues to build. The 52-week high is 0.84 — where bearish options pressure peaked earlier this year.

Short Interest: A Footnote, Not a Story

Short interest edged up 9% on September 24 to 132.6 million shares. At 1.87% of free float, the level is low. The lending market is extraordinarily loose — shares available to borrow vastly exceed demand. This isn't a squeeze setup. It's background noise.

What to Watch

Earnings land October 21. The last print sparked a 3.1% one-day move and a 7.5% five-day gain. The July 2026 print before that saw a 2.9% one-day loss. Analyst targets and options sentiment are pointing one direction. The earnings report will be the real test.

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• Analyst consensus: Buy | Mean PT: $29.01 | Current price: $25.45
• Most recent upgrade: BNP Paribas → Outperform, PT $30 (Sep 21)
• Put-call ratio: 0.69 vs. 20-day mean of 0.74 (–1.98 z-score)
• Short interest: 1.87% of free float — low, lending market loose
• Next earnings: October 21, 2026