AT&T's 5G Rollout, Time Warner Acquisition Among The Pillars Of Tigress Financial's Bull Thesis

The upcoming launch of a high-speed 5G wireless communications network coupled with the recent acquisition of Time Warner makes AT&T Inc. T a compelling equity, according to Tigress Financial Partners. 

The Analyst

Analyst Ivan Feinseth upgraded AT&T from Neutral to Buy.

The Thesis

AT&T has been working on a 5G mobile network since 2017 and is ready to launch service in several markets this year, Feinseth said in the Monday upgrade note. ((See his track record here.) 

The new network will "dramatically enhance" Internet of Things connectivity among all types of mobile and fixed devices, the analyst said. Autonomous driving systems stand to benefit from the 5G rollout, as it gives the new sector access to "much-needed" data speeds more than 400 times faster than existing 4G networks, he said. 

AT&T "game-changer" acquisition of Time Warner also supports a bullish thesis, Feinseth said.

AT&T's acquisition transforms the company into one of the biggest within the entire telecom and media space, with a vast library including HBO, Warner Bros. a 10-percent stake in Hulu and Turner Broadcasting, he said.

The ability for AT&T to offer direct-to-consumer content should not only support DirecTV subscriptions but higher wireless subscriptions through bundles, the analyst said. 

The company's FirstNet initiative will result in $6.5 billion of success-based payments over five years to design and build out the first dedicated nationwide network for first responders, Feinseth said. 

The acquisition of AlienVault gives AT&T better exposure to expand its cybersecurity capabilities among small- and medium-sized businesses, according to Tigress. 

Price Action

AT&T shares were down 0.33 percent at $32.74 at the time of publication Monday. 

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Posted In: 5GAutonomous DrivingIvan FeinsethMobile NetworksTigress Financial PartnersTime WarnerAnalyst ColorUpgradesAnalyst Ratings