AT&T: Jefferies maintains 'hold' rating after 'WatchTV'
(CercleFinance.com) - Jefferies maintains its "hold" rating on AT&T, with a target price of 35 dollars, after the telephone operator presented a new streaming video offering called "WatchTV," to be launched next week.
The offer - set up just days after the group closed the Time Warner merger - will feature over 30 live channels, and will be compatible with every smartphone, tablet and web browser, in addition to certain streaming devices.
In addition to live programming, WatchTV will include over 15,000 TV shows and movies on demand, it said.
This "first of new offers to come" will be sold at a 15 dollars-per-month standalone service, AT&T said.
In a reaction note, Jefferies pointed out it is now the cheapest TV bundle available on the market.
"While the product will not be particularly profitable on a standalone basis, we think it could be a good retention too," the broker said.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The offer - set up just days after the group closed the Time Warner merger - will feature over 30 live channels, and will be compatible with every smartphone, tablet and web browser, in addition to certain streaming devices.
In addition to live programming, WatchTV will include over 15,000 TV shows and movies on demand, it said.
This "first of new offers to come" will be sold at a 15 dollars-per-month standalone service, AT&T said.
In a reaction note, Jefferies pointed out it is now the cheapest TV bundle available on the market.
"While the product will not be particularly profitable on a standalone basis, we think it could be a good retention too," the broker said.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.