How The Street Responded To AT&T's Mega-Deal For Time Warner

There are at least two things most analysts covering telecomms share in respect to AT&T Inc. (NYSE: T)'s move to buy Time Warner Inc (NYSE: TWX).

The first is about the challenges in getting the regulatory approval given the experience of Comcast Corporation (NASDAQ: CMCSA)–NBC deal. However, the New York Times' Jim Stewart gave a 98 percent chance of regulatory approval.

The second is the downgrading of Time Warner and AT&T shares, with most of them now at Neutral/Hold ratings.

Related Link: Telecomms: The Most Interesting Sector Going Into Earnings

The following brokerages have made changes in respect of Time Warner:

• Credit Suisse downgraded from Buy to a Neutral rating but boosted target price from $90 to $107.50.
• MKM Partners downgraded from Buy to a Neutral rating.
• Goldman Sachs remove Time Warner from Conviction Buy List and downgraded to a Neutral.
• Moffett Nathanson downgraded from Buy to a Neutral rating.
• Atlantic Equities downgraded from Overweight to Neutral.
• RNC Capital Markets from Outperform to Sector Perform rating.
• Evercore ISI Group downgraded from Buy to a Neutral rating.
• Loop Capital maintains a Buy rating and lifted price objective from $96 to $107.50.

The following brokerages have made changes in respect of AT&T:

• Cowen & Co. downgraded from Outperform to Market Perform.
• Drexel Hamilton downgraded from Buy to a Hold rating.
• Wunderlich maintains Buy rating.

At Last Check ...

• AT&T was down 1.88 percent at $36.78.
• Time Warner was down 2.53 percent at $87.22.

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