Cowen and Co. wrote in a note to investors that AT&T's market valuation is off the mark and that the telecom will "outperform the market by 15 percent" through the end of this year. AT&T's stock price fell sharply after CEO Randall Stephen hinted at weakened quarterly results thanks to a softening consumer wireline business, but Cowen believes that sales of Apple's iPhone and net subscriber additions will help the company outperform previous forecasts for its Q4. Cowen hiked its previous forecast of 2.36 million customer additions to 2.4 million customer additions thanks to an expectation of bullish sales of the iPhone during the quarter.

For more on Cowen's take:
- read this report from RCR News