Collins Stewart Launches Coverage on the Telecommunications Services Sector
T Hot Sheet
Rating Summary:6 Buy, 16 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Collins Stewart launches coverage on the telecommunications services sector with neutral bias on the largest names in the universe including AT&T (NYSE: T), Verizon (NYSE: VZ), Qwest (NYSE: Q) and Sprint (NYSE: S), Buy ratings on selected emerging carriers including tw telecom (Nasdaq: TWTX), Global Crossing (Nasdaq: GLBC) and Paetec (Nasdaq: PAET), and Buy rating on the carrier-neutral data center Switch and Data (Nasdaq: SDXC).
Collins analyst says, "We expect revenue growth for large capitalization carriers will be difficult to produce as wireless revenue growth slows and wireline cannibalization accelerates with increased smart phone adoption. We question if Sprint can return to revenue growth without further pressuring margins."
"Having felt the effects of the down draft early on and believing in their ability to take significant market share upon recovery, we think companies like Cbeyond (Nasdaq: CBEY), Cogent (Nasdaq: COGT), Global Crossing, Level 3 (Nasdaq: LVLT), Paetec Holdings and tw telecom are better positioned to outperform the balance of telecom as well as the market in a recovery scenario. We recommend Global Crossing, Paetec and tw telecom for purchase at this time."
"Despite the weak economy, carrier-neutral data centers have continued to produce strong revenue growth and margin improvements. With the marginal stress reported last year now largely behind, we believe demand remains strong. We recommend Switch & Data for purchase at this time."
Collins analyst says, "We expect revenue growth for large capitalization carriers will be difficult to produce as wireless revenue growth slows and wireline cannibalization accelerates with increased smart phone adoption. We question if Sprint can return to revenue growth without further pressuring margins."
"Having felt the effects of the down draft early on and believing in their ability to take significant market share upon recovery, we think companies like Cbeyond (Nasdaq: CBEY), Cogent (Nasdaq: COGT), Global Crossing, Level 3 (Nasdaq: LVLT), Paetec Holdings and tw telecom are better positioned to outperform the balance of telecom as well as the market in a recovery scenario. We recommend Global Crossing, Paetec and tw telecom for purchase at this time."
"Despite the weak economy, carrier-neutral data centers have continued to produce strong revenue growth and margin improvements. With the marginal stress reported last year now largely behind, we believe demand remains strong. We recommend Switch & Data for purchase at this time."
You May Also Be Interested In
- UPDATE: William Blair Starts EPIQ Systems (EPIQ) at Outperform; Broad Suite of Solutions in Electronic Discovery Sector
- National Bank Starts Agrium (AGU) at Underperform
- Needham & Company Reiterates a 'Buy' on UQM Technologies (UQM); Increasing EV Adoption
Create E-mail Alert Related Categories
New CoverageRelated Entities
Collins StewartSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
