DISCB - Morgan Stanley comes out bullish on AT&T in catalyst-driven look at Discovery deal

Morgan Stanley has taken a bullish stance on AT&T stock (T -0.7%), with a catalyst-driven take that the upcoming spin-off of its shares for the Warner Bros. Discovery deal will unlock value in communications. The update comes ahead of AT&T's investor day on March 11, where some additional details are expected on AT&T's Communications business going forward. Discovery's shareholder vote on the deal comes that day as well. AT&T and Discovery (DISCA -4.6%) have set expectations that they can close the $43 billion deal in mid- to late April. AT&T investors will receive about 0.24 shares in Warner Bros. Discovery ("New Discovery") on closing; those shares are currently worth about $6.75 per AT&T share, leaving an implied "RemainCo" price for AT&T of $16.78, Morgan Stanley's Simon Flannery notes. It also would have an ongoing dividend of $1.11/share, implying a pro forma yield of 6.6%, among the highest in the entire

For further details see:

Morgan Stanley comes out bullish on AT&T in catalyst-driven look at Discovery deal