Shares of AT&T (NYSE:T), Verizon Communications (NYSE:VZ), MetroPCS (NYSE:PCS) and Leap Wireless (NASDAQ:LEAP) all soared today after the overall sector received a positive outlook from analyst William V. Power of R.W. Baird & Co.
This was based on Power's assumption the proposed acquisition of T-Mobile USA by AT&T will clear regulatory hurdles and be approved.
Power sees the wireless industry becoming more stable and competitive, while companies like Leap and MetroPCS benefiting from it.
Also noted was an approved deal could result in Verizon or Sprint (NYSE:S) attempting to acquire U.S. Cellular, MetroPCS or Leap Wireless.
The obvious benefit for AT&T would be lower costs and for Verizon the current number of competitors would be cut back, which would result in a more consistent pricing environment, according to Power.
Leap was trading at $15.70, up $0.68, or 4.53 percent, as of 12:57 PM EDT. MetroPCS was at $15.85, gaining $0.31, or 1.96 percent. Verizon was trading at $37.82, rising $0.53, or 1.42 percent. AT&T was at $29.36, up $0.51, or 1.79 percent.
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