TECH - Verizon AT&T And T-Mobile Set For Gains Goldman Sachs Cites AI and Data Center Demand | Benzinga
Goldman Sachs analyst James Schneider, Ph. D., initiated coverage on the U.S. Telecom Services and infrastructure sector (14 companies) and is most constructive on wireless carriers and data centers.
Schneider noted that the U.S. telecom industry is in a state of transformation. The U.S. telecom operators have refocused on their core business after emerging from a period as conglomerates marked by shareholder capital destruction.
For the first time in a decade, the U.S. wireless operators are entering a period where both competitive and capital intensity are moderating simultaneously.
He said this backdrop drove healthier growth and margin dynamics, with the potential for significant capital returns and stock re-rating.
U.S. towers are unlikely to enjoy the same structural tailwinds they have over the past decade, but “self-help” actions could unlock shareholder value, as per Schneider.
The era of 5G failed to deliver any revolutionary “killer app” but the technology has enabled telecom ...