Stock Market News

Telcom Stocks to Hold Up Well into Year-End, T-Mobile Remains the Top Pick at Morgan Stanley

2022.10.06 12:09



© Reuters. Telcom Stocks to Hold Up Well into Year-End, T-Mobile Remains the Top Pick at Morgan Stanley

By Sam Boughedda 

Morgan Stanley analysts told investors in a note Thursday that telecommunications stocks may hold up well into year-end.

The analysts explains in a research memo that investors are increasingly concerned that we are entering a recession, and typically, telecommunications stocks would benefit from a defensive rotation in such an environment.

“We did see some buying interest earlier this year, but a second consecutive guidance cut from Verizon in 2Q along with AT&T’s bearish commentary on customer payment trends and free cash flow put an end to that rally,” the analysts wrote.

He added that since then, we have seen telecommunications stocks struggle, “moving broadly in line with movements in interest rates with the dividend yield/10-year treasury yield spread remaining fairly stable.”

“We are cautiously optimistic that 3Q results could be more reassuring, potentially helping the stocks hold up well into year end. Many of the macro headwinds (apart from rates) highlighted by our strategist Mike Wilson are less relevant for Telco stocks: Europe weakness, dollar strength, higher rates, China reopening uncertainty, etc.,” the analysts added.

Morgan Stanley’s Top Pick in telecom services remains T-Mobile (NASDAQ:), with the analysts commenting that “the $14bn initial buyback program providing valuable support in these volatile markets.”



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 97,389.09 0.95%
ethereum
Ethereum (ETH) $ 3,328.52 3.13%
tether
Tether (USDT) $ 1.00 0.09%
solana
Solana (SOL) $ 248.84 3.91%
bnb
BNB (BNB) $ 652.71 1.38%
xrp
XRP (XRP) $ 1.37 7.07%
dogecoin
Dogecoin (DOGE) $ 0.416898 6.84%
usd-coin
USDC (USDC) $ 1.00 0.11%
cardano
Cardano (ADA) $ 0.986704 8.26%
staked-ether
Lido Staked Ether (STETH) $ 3,327.16 3.15%
tron
TRON (TRX) $ 0.206964 3.50%
avalanche-2
Avalanche (AVAX) $ 40.81 3.97%
the-open-network
Toncoin (TON) $ 6.03 6.98%
stellar
Stellar (XLM) $ 0.505864 0.50%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 8.36%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,946.38 2.82%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,218.05 0.92%
polkadot
Polkadot (DOT) $ 8.55 10.06%
chainlink
Chainlink (LINK) $ 17.49 2.62%
bitcoin-cash
Bitcoin Cash (BCH) $ 502.40 2.97%
weth
WETH (WETH) $ 3,329.76 3.09%
sui
Sui (SUI) $ 3.31 7.16%
near
NEAR Protocol (NEAR) $ 6.95 6.84%
pepe
Pepe (PEPE) $ 0.00002 6.61%
leo-token
LEO Token (LEO) $ 8.63 0.25%
litecoin
Litecoin (LTC) $ 94.91 5.97%
uniswap
Uniswap (UNI) $ 10.66 2.62%
aptos
Aptos (APT) $ 12.00 9.57%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,504.26 3.14%
hedera-hashgraph
Hedera (HBAR) $ 0.139653 8.93%
internet-computer
Internet Computer (ICP) $ 11.22 4.00%
usds
USDS (USDS) $ 1.00 0.08%
crypto-com-chain
Cronos (CRO) $ 0.18445 7.93%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.548322 6.83%
ethereum-classic
Ethereum Classic (ETC) $ 28.05 6.86%
render-token
Render (RENDER) $ 7.88 1.39%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 1.64%
bittensor
Bittensor (TAO) $ 527.14 1.84%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.11%
kaspa
Kaspa (KAS) $ 0.14927 4.71%
whitebit
WhiteBIT Coin (WBT) $ 24.41 1.54%
dai
Dai (DAI) $ 1.00 0.13%
vechain
VeChain (VET) $ 0.04264 2.06%
bonk
Bonk (BONK) $ 0.000046 6.34%
arbitrum
Arbitrum (ARB) $ 0.832504 5.89%
blockstack
Stacks (STX) $ 2.19 2.86%
filecoin
Filecoin (FIL) $ 5.44 2.08%
celestia
Celestia (TIA) $ 7.58 2.97%
cosmos
Cosmos Hub (ATOM) $ 8.33 5.75%
mantra-dao
MANTRA (OM) $ 3.55 3.72%