Piper Jaffray Overweight On AT&T (T)

Piper Jaffray has an Overweight rating and a $34 price target on shares of AT&T T. In a note to investors, Piper Jaffray writes, "AT&T announced that it will acquire T-Mobile USA for $39 billion. We think this could be a highly beneficial transaction for AT&T, with high cost synergies and plenty of logical business sense. We think the highest hurdle will be regulatory approval; with a large break up fee, AT&T may be comfortable it has mitigated that risk. Although AT&T does not expect the transaction to be earnings accretive until the third year, the company expects synergies to exceed the purchase price." Shares of T are up 26 cents in pre-market trading to $28.20, a gain of almost 1%.