In early Monday trading, shares of AT&T  were up slightly under 2% after Barclays upgraded the stock to overweight from equal weight, with a $30 price target maintained.

Analyst Kannan Venkateshwar told investors that they've been touting AT&T's investment appeal for a while but haven't upgraded the stock because of concerns about the expected "drag from the Warner Media deal technicals and uncertainty regarding the competitive environment."

File:AT&T logo 2016.svg - Wikimedia Commons

"However, the timeline is getting more aligned with the opportunity due to upcoming catalysts such as proximity to the 2022 guidance cycle across telecom companies and potential decision on Warner Media deal structure, as a result of which we expect more focus on the name in the coming months," the analyst explained.

Venkateshwar also mentioned how telecom businesses will be better positioned in 2022 since wireless trends have "relatively more visibility" than cable. He also emphasized the Infrastructure Act's benefits and the possibility for new revenue streams.

Morgan Stanley raised the stock to overweight last week, citing the business's recent share price decline, which has brought its year-to-date valuation to appealing levels.