The Big 3 Telecomms, AT&T Get Morgan Stanley Upgrade, MACD Buy Signal

  • Post category:Analysts Activity
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T stock received an upgrade from Morgan Stanley on December 16, 2021. The case is a compelling buy-the-dip logic after the big three telecommunications providers’ stocks are down -17% YTD.

Morgan Stanley upgrades AT&T to Overweight, raises Telecom Services to In-Line

On December 16, 2021, Morgan Stanley analyst Simon Flannery upgraded AT&T to Overweight from Equal Weight with a price target of $28, down from $32, as he also raised the firm’s Telecom Services industry rating to In-Line from Cautious following a sustained period of underperformance that he sees having brought valuations in the space to historically attractive levels on both an absolute and relative basis. The “Big 3” wireless stocks – AT&T, Verizon (VZ), and T-Mobile (TMUS) – have fallen an average of 17% year-to-date and the group now offers the highest dividend yield among all 24 industry groups in the broader market, Flannery tells investors. T-Mobile (T) is his Top Pick in the Telecom Services sector, but he also believes AT&T’s recent underperformance has driven valuations to attractive levels while contending that the stock should rally as the pending WarnerMedia transaction is completed.

Sinclair Sports Group and AT&T Launch Strategic Collaboration Featuring Shams Charania for the 2021-22 NBA Season

On December 15, 2021, Sinclair Sports Group, a sales division of Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) and AT&T today announced a new strategic collaboration, that will maximize digital and social assets across Stadium, the 24/7 multi-platform sports network, and the Bally Sports Regional Sports Networks (RSNs) for the 2021-22 National Basketball Association (NBA) season.

Building-off of their longstanding relationship, AT&T will join Sinclair and Stadium to collaborate with NBA Insider, Shams Charania, by sponsoring breaking news updates, evolving storylines, creative digital integrations, on-site event activations, and more throughout the season. The collaboration will also welcome AT&T as the Presenting Sponsor of the Stadium produced weekly NBA show, “Inside the Association,” and throughout NBA games that stream live on the Bally Sports app and BallySports.com.

Since joining Stadium in 2018, Charania has been an integral part of Stadium’s core programming lineup. He has seen his Twitter following increase nearly 50% over the last year and boasts one of the highest engagement rates by any user on Twitter. The Chicago native has received an enormous amount of attention since joining Stadium, including being included on Forbes “30 Under 30” list and named “Insider of the Year” by The Big Lead. Charania has also made several appearances on CNN, NBC, CNBC, TNT, FOX Sports and a host of other high-profile interviews since joining Stadium.

This latest collaboration between Sinclair and AT&T tipped-off ahead of the 2021 NBA Draft in late July with “Inside the Association: Draft Special, Presented by AT&T 5G.” The four-hour broadcast set audience records for Stadium and saw a nearly 25% viewership increase from the previous year’s broadcast. This work continued the following week with “Inside the Association: Free Agent Special, Presented by AT&T 5G” with Charania breaking news live on Stadium.

“We are excited to expand our collaboration with AT&T through this innovative and strategic program,” said Eric Welles, SVP of National Sales, Sinclair Sports. “By utilizing Sinclair’s NBA assets and AT&T’s presence within the NBA community, we can provide fans unique content through digital, social, and on-site activations. Our work together will allow us to meet fans where they are on all platforms with timely and important coverage, while also creating experiences that will push the envelope on how they interact and engage with the NBA.”

📺 VIDEO Jim Cramer: AT&T may be on restart mode and that’s exciting

In November 2021, CNBC’s Jim Cramer and the ‘Squawk on the Street’ team discuss shares of AT&T following the company’s third-quarter earnings.

Jim Cramer: AT&T may be on restart mode and that's exciting

📈 AT&T Stock Technical Analysis

T Stock

The MACD gave a buy signal on December 16, 2021. However, both the long and short-term trends are negative. T is one of the lesser performing stocks in the Diversified Telecommunication Services industry. 89% of 45 stocks in the same industry do better. T is currently trading near the lower end of its 52-week range, which is not a good sign considering that the S&P500 Index is trading near new 52 week highs at the moment. There is a resistance zone ranging from 24.08 to 24.22. This zone is formed by a combination of multiple trend lines in multiple time frames. There is another resistance zone ranging from 24.66 to 24.76. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. The technical rating of T is bad and it also does not present a quality setup at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when T stock is a good entry.

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