Update: Still Time To Sell Both AT&T And Verizon As Sprint Steps Up Its Pricing Initiatives
- Sprint was up 6% yesterday following the introduction of a new iPhone plan. Investors are increasingly confident in the group’s ability to claw back market share.
- We stick to our view that AT&T and Verizon will have no choice but to cut most pricing plans if they don't want to lose share.
- The potential pressure on earnings is manageable and is unlikely to materially affect the companies' dividend policies.
- But a price war will obviously be negative for sentiment. Both stocks are likely to underperform for a pretty long time.