3 Telecom Stocks Seeing Action: RW Baird’s Take on Verizon, Sprint’s Spectrum Needs, AT&T Looks Abroad
Verizon (NYSE:VZ): RW Baird upgraded Verizon to Outperform from Neutral based on improved earnings growth and long-term positioning following the acquisition of Vodafone’s 45 percent stake in Verizon Wireless. The price target on the shares has been raised to $53 from $52.
Sprint (NYSE:S): Sprint is attempting to convince the Federal Communications Commission to hold its auction for the H Block of frequencies in January, a move that the company thinks will let it get a leg up on the competition. Rivals like T-Mobile (NYSE:TMUS) have encouraged the FCC to delay the auction until later next year, when the H Block could be bundled with other frequencies to produce a larger price ticket. Many observers of the situation have noted that Sprint could possibly be the only bidder if the H Block was put up for auction by itself in January.
AT&T (NYSE:T): AT&T may be tempted to expand overseas into Europe as American markets show signs of maturing, with sales in some categories of smart technology slowing to 2 percent growth per year. Though AT&T enjoys gross margins of nearly 60 percent, some hold that an expansion into European markets is necessary to sustain the company’s performance as well as its stock price. However, the move to Europe could be complicated by complex rules and regulations as well as by firmly entrenched European communications companies, making a partnership perhaps the more attractive option to the American telecom giant.