FAA Chief Warns System ‘Will Continue to Break.’ AT&T, Verizon, and Lumen Could Be Big Winners
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FAA Administrator Bryan Bedford gave a frank assessment after the latest air traffic disruption. The nation’s aging control system “will continue to break” until it is replaced, he said. He also named the companies working on the new architecture: AT&T, Verizon and Lumen. For AT&T (NYSE:T | T Price Prediction), the warning comes while the stock is down 6.36% year-to-date at $22.19. Over the same stretch, the business just posted its best consolidated service revenue growth in more than four years[1]. Reaching $30 per share in 2027 will require AT&T to execute on several areas.
Wall Street Already Sees 24% Upside for AT&T
Analysts’ average target of $27.59 implies 24% upside. AT&T has beaten EPS estimates in six consecutive quarters. In the third quarter it earned $0.65[2] in adjusted EPS against a $0.60 estimate, and revenue rose 5.3% to $32.32 billion. Management raised its 2026 adjusted EPS outlook to the $2.40 range[2] and is targeting free cash flow of $19B+ in 2027.
Here’s the Math Behind $30 Per Share
Today AT&T trades at 9x forward earnings. At $30, that multiple would rise to about 12x.
Several drivers could drive AT&T to $30.
- An FAA foothold: AT&T already holds an FAA telecommunications modernization contract, including an initial $74.3 million task order awarded in August 2026. Congress previously provided $12.5 billion for air traffic control modernization, and officials are seeking roughly $30 billion more. Those are government-wide figures covering the entire modernization program, and each new task order would add long-duration revenue.
- AI-grade fiber: CEO John Stankey noted that “over 90% of mapped U.S. data centers are within 10 miles of our fiber.”[3] AT&T is also working with Microsoft (NASDAQ:MSFT) to meet its high-capacity needs.
- Record customer growth: Internet net adds hit a record 769,000[2] in the third quarter.
- Capital returns: AT&T plans $24B+ in buybacks from 2026 to 2028, and its $1.11 dividend yields about 5%.
Verizon (NYSE:VZ) and Lumen Technologies (NYSE:LUMN) are possible additional winners. Verizon’s CFO said the carrier “returned to growth in the public sector.”[4] Lumen reported AI traffic growth of more than 1,000% since April. Bedford’s comments did not set any revenue allocation among the three companies, though.
AT&T’s History Says $30 Is Within Reach
The 35% gain needed is ambitious for a stock with a beta of 0.494. Still, AT&T has traded as high as $28.43 within the past 52 weeks, and shares have returned 56.06% over five years. Reaching $30 would mean slightly exceeding a level the stock touched recently.
$30 Is a Stretch, but Here’s Why It’s Possible
Hitting $30 would take a 35% gain in 2027. Analysts already see 24% upside, earnings keep beating forecasts, and Bedford’s warning puts political urgency behind modernization funding. Real challenges remain: procurement delays, competition for future task orders, and net debt/EBITDA of 3.13x. Such returns are rare, and the drivers above show how AT&T could see outsized returns in 2027.
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After two decades of patrolling the dark corners of suburbia as a police officer, Rich Duprey hung up his badge and gun to begin writing full time about stocks and investing. For the past 20 years, he’s been cruising the markets looking for companies to lock up as long-term holdings in a portfolio while writing extensively on the broad sectors of consumer goods, technology, and industrials. Because his experience isn’t from the typical financial analyst track, Rich is able to break down complex topics into understandable and useful action points for the average investor. His writings have appeared on The Motley Fool, InvestorPlace, Yahoo! Finance, Money Morning, and, of course, 24/7 Wall St. He has been featured in both U.S. and international publications, including MarketWatch, Financial Times, Forbes, Fast Company, and USA Today.
