Canaccord Genuity on Telecommunications: Stocks to Like and Stocks to Avoid; Towers Still in Favor

Canaccord Genuity on Telecommunications: No Summer Lull...Lots of Moving Parts

Analyst, Greg Miller, said, "With the flood of US wireless news events of the past few weeks, we continue to believe that in spite of the marginal industry improvements witnessed over the past quarter or so, competitive conditions will continue to intensify, especially for the value-oriented subscribers that Leap Wireless (Nasdaq: LEAP), Metro PCS (NYSE: PCS), Sprint (NYSE: S) and T-Mobile target. We would continue to avoid those four stocks and focus instead on the more powerful AT&T (NYSE: T) and Verizon (NYSE: VZ) for those investors seeking a defensive position with high dividend yields."

Tower Stocks Continue to Benefit

"Even with the Sprint iDEN decommissioning process that is currently underway (9,600 sites YTD and likely 20k more next year), we continue to believe that the tower stocks will remain one of the most significant beneficiaries of the increasing levels of competition in the US wireless business. We continue to believe that American Tower (NYSE: AMT), Crown Castle (NYSE: CCI) and SBA Communications (Nasdaq: SBAC) will benefit from continued amendment activity and new site deployments, as well as through international expansion to key markets."

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