Science & Technology
Science and Technology
Science and Technology
Wed, February 25, 2009 Schaeffer's Market Blog: Call Trading Soars on AT&T Inc. Following Upgrade
CINCINNATI--([ BUSINESS WIRE ])--AT&T Inc. (NYSE: T) received a boost this morning when JPMorgan upgraded the telecommunications company from "neutral" to "overweight." The brokerage firm cited its belief that T's guidance on wireline business is conservative, "lending to potential outperformance versus Street consensus estimates," the firm said. JPM also thinks "the path to wireless margin recovery is clearer." With the iPhone "now contributing more meaningfully to revenue, we expect margins to return to pre-iPhone levels by the fourth quarter 2009 or early 2010 and are more constructive on long-term margin potential," the firm adds.
In other news, the U.S. Supreme Court Wednesday ruled in favor of a unit of AT&T, rejecting claims by Internet service providers that alleged the phone giant charged unreasonable wholesale prices for access to the company's phone networks. "We decline the invitation to recognize such claims. Two wrong claims do not make one that is right," Chief Justice John Roberts Jr. wrote in the court's majority opinion. Roberts said the Internet companies have not "stated a duty-to-deal claim" and "have not stated a predatory pricing claim."
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