According to a report published by Reuters, AT&T, Inc. (T) and Verizon Communications (VZ) have decided to embrace new precautionary measures to tackle air safety concerns arising from the planned use of C-Band spectrum for 5G wireless.
The move comes after The Federal Aviation Administration (FAA) and the aviation industry cautioned about the disturbance that can be caused by 5G deployment with sensitive aircraft electronics like radio altimeters.
Initially, the companies plan to roll out the 5G service at reduced power for a period of six months. Also, they have suggested taking extra precautions in areas around public airports and heliports. (See AT&T stock charts on TipRanks)
The FAA said the efforts of the telecom companies were encouraging. Also, the regulator is likely to provide an emergency directive to airlines by early December, which may place restrictions on many types of critical flight operations.
Notably, both AT&T and Verizon are not fully convinced by the aviation industry’s claim of the interference problem. Thus, they have agreed to honor the commitments till July 6, following which evidence regarding the problem will have to be presented.
See Top Smart Score Stocks on TipRanks >>
Wall Street’s Take
Last month, Wells Fargo analyst Eric Luebchow reiterated a Sell rating on AT&T and lowered the price target to $26 from $28, implying 6.3% upside potential.
Consensus among analysts is a Hold based on 3 Buys, 5 Holds and 1 Sell. The average AT&T price target of $30.75 implies 25.7% upside potential. Shares have lost 15.6% over the past year.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into AT&T’s performance.
According to the tool, compared to the previous year, the website of AT&T recorded a 3.6% monthly decrease in global unique visits in October. Moreover, year-to-date website traffic has increased 14.1% against the same period last year.
Blink Opens India Office to Expand International Footprint
Health Canada Approves Johnson & Johnson’s COVID-19 Vaccine
Mastercard Acquires Arcus; Shares Rise