Why AT&T (T) Is Up Today

NEW YORK (TheStreet) -- AT&T (T) is up on a slew of news over the last few days. This included positive comments from Morgan Stanley, which said that the company could see significant EPS lift in 2014 due to a customer shift towards instalment payment plans and away from direct mobile phone purchases.

The popularity of payment plans offered by T-Mobile  (TMUS) has caught on as customers use the payment plan option to purchase handsets that may otherwise have been too expensive. "Carriers are moving to installment sales at varying degrees, with T-Mobile and AT&T leading the way," wrote analyst Simon Flannery in the Morgan Stanley note.

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"We expect the transition to installment sales to significantly and temporarily boost carriers' EBITDA and EPS growth, but lower cash flows," Flannery added.

AT&T also announced that it had invested $6.55 billion from 2011-2013 in an effort to enhance its infrastructure in the state of Texas. The telecom giant made 3,645 upgrades in the state in 2013 alone as it continues to execute its Project Velocity IP program and enhance its wireless broadband network.

That announcement comes less than 24 hours after the company announced that it had spent another $1.15 billion upgrading its network in Louisiana over the same period. AT&T closed up 0.27% at $32.98 on Tuesday.

TheStreet Ratings team rates AT&T INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

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