Goldman Sachs bullish on telecom, initiates several buy ratings

Goldman Sachs has initiated coverage on multiple companies within the telecommunications services sector. The investment bank has issued a Buy rating for industry players, including AT&T (T), T-Mobile (TMUS), American Tower (AMT), and Verizon (VZ). The firm's positive outlook is based on three key factors: anticipated cyclical recovery in the sector, growth opportunities driven by artificial intelligence (AI), and market underestimation of these companies' potential.

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This post was written by Angel Smith

Video transcript

All right.

Moving on Goldman Sachs kicking off its coverage on us telecom services names with a bullish tone.

So he was there, they kind of initiate us telecom service infra Infrastructure sector, their body by ratings, Sean say they reflect stocks where we believe the market does not fully appreciate the sustainability of growth, the company can deliver across the cycle or where the pace of potential cyclical recovery in fundamentals is being underpriced.

So what are those names?

Sean?

They give you a few buy ratings according to Goldman, they would say Verizon AT&T digital realty, Equinox T Mobile, American Tower and Frontier all buys according to Goldman.

Yeah, they're pretty bullish on the sector overall just in terms of the opportunity, the growth opportunity that they do see for a number of these names you have Verizon on your screen, they have a buy rating of $50 price target there.

What also caught my attention was that within this?

No, Goldman was naming some of the catalysts here just in terms of what they see driving some of these names higher and they talked about A I and they said the A I represents quote an important opportunity here for the sector.

They also went on to say that they see this backdrop driving healthier growth margins potential here for significant capital returns.

When they talk about the fact that both competitive intensity and capital intensity are moderating, simultaneous.

And they're doing that here, at least for, for what Goldman says is for the first time.

So again, they're bullish on uh Verizon, like I just said, when you talk about uh AT&T, they're saying that some of their cattle is there fiber, broadband, leadership growth, and wireless franchise and then t mobile broadband driving that next chapter of growth.

They don't like everything though.

They don't like everything we should mention.

The CS um Charter communications, all these lumen technologies.

Goldman says, no, thanks.