AT&T (T) has inked a five-year agreement with Ericsson (ERIC) for the expansion of its 5G network and C-band spectrum. The deal, which builds on 20 years of collaboration, should allow the wireless giant to expand its 5G network coverage. T shares fell 2.76% to close at $26.03 on October 11.
AT&T is a telecommunication media and technology company that offers wireless, voice, data communication, and targeted advertising services.
As part of the collaboration, AT&T will leverage Ericsson’s network expertise to take the 5G network to more customers, businesses, and first responders. The use of advanced technology should also allow the wireless carrier to enable 5G use cases in sports and venues, entertainment, travel and transportation, business transformation, and public safety.
Ericsson’s technology should allow AT&T to increase its flexibility and provide faster delivery of services. It should also assist in network evolution while offering support for future network enhancements. (See Top Smart Score Stocks on TipRanks)
Yesterday, Barclays analyst Kannan Venkateshwar reiterated a Hold rating on AT&T and lowered the price target to $30 from $34, implying 15.25% upside potential to current levels. According to the analyst, the stock’s near-term technicals remain challenging due to Discovery equity performance drag. However, if sustained, its unit growth story could carry over to its multiples once the Warner Media/ Discovery deal is completed.
Consensus among analysts is a Hold based on 4 Buys, 7 Holds, and 1 Sell. The average AT&T price target of $31.30 implies 20.25% upside potential to current levels.
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