NEW YORK (TheStreet) -- AT&T (T) rose Monday after the telecom behemoth revealed it struck deals with eight automakers to equip vehicles with Internet access capability and offer free and paid content exclusively for these cars. Windstream (WIN) fell after it received a price cut. Telecom stocks rose overall, with the exception of Sprint (S), as the annual JP Morgan Global Technology, Media & Telecom Conference kicked off Monday for three days in Boston.
AT&T climbed 1.6% to close at $34.87.
The telecom giant rose after one of its senior executives in charge of emerging devices, Chris Penrose, told Reuters that General Motors (GM), Audi and Ford (F) were among the eight car makers to partner with AT&T to bring Internet access into the vehicles. AT&T is hoping to offer free and paid content to these users, with the goal of selling more data, according to the Reuters report.
Windstream Communications fell 2.9% to end the day at $8.36, on a day when the broader markets and Nasdaq Telecom Index were up.
The voice and data network communications service provider took a hit after Goldman Sachs analysts cut the company's price target to $7.50 from $7.75. Goldman Sachs made the cut to Windstream's valuation based on a blend of these two methods:
Dividend yield (7.5%) and 2016E EV/EBITDA (4.3x). The target multiples are based on peer/historical trading levels.
That said, however, Goldman Sachs acknowledged Windstream could rise higher based on an increase in its sales of its broadband bundles, a sharp recovery in the economy and future mergers and acquisitions in the industry.