Jefferies analyst Mike McCormack is out today with a research report on AT&T Inc. (NYSE:T), discussing recent investor concerns regarding the industry movement to unlimited data plans, and the pending launch of DirecTV, which could affect AT&T’s ability to provide a robust reliable service. McCormack rates AT&T shares a Buy, with a price target of $48.

McCormack noted, “In our view, and reinforced by our meetings with Tom Keathley (AT&T’s SVP of Wireless Architecture and Design) at CTIA in Las Vegas last week, AT&T is well positioned to meet future demands, with a robust spectrum portfolio, well paced small cell deployments, and technology developments that will further reduce network strain.”

“We see three catalysts that could drive more robust traffic demand in the near-term, including (1) OTT expansions, including the planned introduction of DirecTV Now and Mobile in 4Q; (2) the introduction of “Data Free TV”, which allows DirecTV/U-Verse subscribers to stream live or recorded content without counting towards their AT&T wireless data allowance; and (3) rising penetration of unlimited data plans (requires video subscription). Though unlikely to bend the content demand curve meaningfully, we anticipate the services to further impact the network. In our view, AT&T’s traffic-inducing initiatives highlight the company’s confidence in its network,” the analyst continued.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mike McCormack has a yearly average return of 10.8% and a 76% success rate. McCormack has a 11.8% average return when recommending T, and is ranked #97 out of 4151 analysts.

Out of the 27 analysts polled by TipRanks, 19 rate T stock a Buy, 7 rate the stock a Hold and 1 recommends a Sell. With a return potential of 9%, the stock’s consensus target price stands at $44.