Buy AT&T shares on Trump's agenda, Baird says

AT&T signage is displayed on a monitor above traders working on the floor of the New York Stock Exchange.
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Investors should buy AT&T shares due to the likely better economic and regulatory environment under a Donald Trump administration, according to Baird, which raised its rating on the telecom company to outperform from neutral.

"After many years of avoiding the telcos due to competitive concerns, we are upgrading AT&T following a confluence of events that we believe significantly improve the company's prospects over the coming years," analyst William Power wrote in a note to clients Monday.

"We are positive on the recent media moves, and believe the Trump focus on deregulation and lower tax rates could provide a multiplier effect for T's businesses."

AT&T announced plans in October to buy Time Warner for $107.50 a share. The potential deal will undergo regulatory scrutiny next year.