NEW YORK (TheStreet) -- Telecom company AT&T (T) - Get Report was started with a "buy" rating and a price target of $40 at Deutsche Bank.

The bullish rating is due to the company's large scale which is its key to future positioning.

The firm sees AT&T as having "significant scale" following its merger with DTV. Deutsche Bank believes the deal provides cost synergies in the near term and positions AT&T uniquely among integrated distributors.

Deutsche Bank initiated coverage on several stocks in the U.S. telecom services sector, noting that it believes the sector is facing a "challenging growth trajectory" in the near term, given competition from both internal (wireless) and external (cable) industry sources.

Shares of AT&T are down by 0.35% to $36.60 in pre-market trading on Wednesday morning.

The company's services and products include wireless communications, data/broadband and Internet services, video services, local exchange services, long-distance services, telecommunications equipment, managed networking and wholesale services.

Separately, TheStreet Ratings has set a "buy" rating and a score of A on AT&T stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers. 

The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that it evaluated.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: T

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