June 27, 2018 / 8:10 AM / 6 months ago

BUZZ-MS upgrades U.S. telecom services to "in-line"; prefers tower, fiber stocks

** Morgan Stanley upgrades view of the U.S. telecom services sector to “in-line” from “cautious”, which it had since 2014

** Says upgrade was based on attractive prices and added that as competitive intensity has moderated, wireless industry service is returning to revenue growth for the first time since 2014

** Demand for bandwidth remains robust and has been supported by strong economic and secular trends, says MS

** MS prefers tower stocks such as Crown Castle Corp , American Tower Corp, SBA Communications , data centers such as Digital Realty Trust Inc, CyrusOne Inc, and fiber companies Zayo Group Holding and CenturyLink Inc

** For more defensive minded investors, MS recommends AT&T Inc, Verizon Communications Inc and Telus Corp

** Broadband performance to improve from trough levels in 2018/2019 - MS

** MS resumes coverage of AT&T at a $37 PT and an “overweight” rating, says co’s valuation already reflecting significant concerns

** In a separate note, Barclays reinstates coverage on T-Mobile US Inc and Sprint Corp with “overweight” and “equal weight” ratings, respectively (Reporting by Jasmine I S in Bengaluru)

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