Nomura Securities maintains a 'Buy' on AT&T (T); Merger Shelved, Back To The Old "New" AT&T
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Price: $24.89 +1.26%
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
25 Buy, 27 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Buy' on AT&T (NYSE: T) price target of $34.00.
Analyst, Mike McCormack, said, "We had believed that AT&T’s proposed acquisition of T-Mobile USA was a significant positive step for AT&T and the industry overall. Without the combination, we think the wireless industry will be further weakened by continued hyper-competitive activity, particularly regarding subscriber acquisition costs. While certainly not a perfect proxy, we view the fall-out of the wireline industry a decade ago as eerily reminiscent of what happens when too many players are competing in a scale business."
"We expect investor focus to quickly transition to resolving the need for the large wireless carriers to acquire more spectrum. By our calculation, the spectrum positions are not that dissimilar, as AT&T currently has ~96Mhz of nationwide spectrum, which compares to ~89Mhz at Verizon (NYSE: VZ). Following the respective announced Qualcomm (Nasdaq: QCOM) and Spectrum Co. transactions, AT&T would have ~103Mhz and Verizon will have ~120Mhz, both assuming no divestitures. Compared to Sprint (NYSE: S) and TMobile’s respective ~50Mhz spectrum positions, we think the span between spectrum positions implies that network investment and innovation are more likely than additional AT&T acquisitions near term."
"Similar to the recent Verizon/Spectrum Co. acquisition, we expect a material positive reaction in DISH Network (Nasdaq: DISH) shares to the AT&T news."
For an analyst ratings summary and ratings history on AT&T click here. For more ratings news on AT&T click here.
Shares of AT&T closed at $28.74 yesterday.
Analyst, Mike McCormack, said, "We had believed that AT&T’s proposed acquisition of T-Mobile USA was a significant positive step for AT&T and the industry overall. Without the combination, we think the wireless industry will be further weakened by continued hyper-competitive activity, particularly regarding subscriber acquisition costs. While certainly not a perfect proxy, we view the fall-out of the wireline industry a decade ago as eerily reminiscent of what happens when too many players are competing in a scale business."
"We expect investor focus to quickly transition to resolving the need for the large wireless carriers to acquire more spectrum. By our calculation, the spectrum positions are not that dissimilar, as AT&T currently has ~96Mhz of nationwide spectrum, which compares to ~89Mhz at Verizon (NYSE: VZ). Following the respective announced Qualcomm (Nasdaq: QCOM) and Spectrum Co. transactions, AT&T would have ~103Mhz and Verizon will have ~120Mhz, both assuming no divestitures. Compared to Sprint (NYSE: S) and TMobile’s respective ~50Mhz spectrum positions, we think the span between spectrum positions implies that network investment and innovation are more likely than additional AT&T acquisitions near term."
"Similar to the recent Verizon/Spectrum Co. acquisition, we expect a material positive reaction in DISH Network (Nasdaq: DISH) shares to the AT&T news."
For an analyst ratings summary and ratings history on AT&T click here. For more ratings news on AT&T click here.
Shares of AT&T closed at $28.74 yesterday.
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