AT&T (T) is likely to hit its free cash flow target for 2025 after delivering another solid quarter, with Q4 revenue and earnings per share exceeding expectations, Oppenheimer said in a note emailed Tuesday.

Despite not being able to do so the past few years, the company executed against all its targets for 2024, with management indicating a clear path to doing so again in 2025, Oppenheimer said.

Managing operating expenditures, broadband growth, and restructuring would be the key drivers heading into 2025, the firm added.

"We continue to see a clear path to its $16 billion-plus free cash flow target despite another year of elevated capital expenditure and an incremental $1 billion in cash taxes," Oppenheimer said.

AT&T is due to divest its remaining 70% in DirecTV this year which Oppenheimer said is the right strategy in the longer term even if it puts some pressure on earnings and free cash flow.

Oppenheimer has an outperform rating on the stock, with a price target of $27.

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