After AT&T (T) won approval to acquire Time Warner (TWX), Deutsche Bank analyst Glen Santangelo continues to believe that CVS Health's (CVS) acquisition of Aetna (AET) is on track to close in the second half of 2018. He expects the favorable Time Warner ruling to further reduce the market spreads in both CVS, Aetna and Cigna (CI), Express Scripts (ESRX) from current levels. Shares of CVS represent a "compelling investment opportunity" at current valuation levels regardless of the regulatory outcome of the deal, Santangelo tells investors in a research note. He believes Cigna's acquisition of Express Scripts is also likely to close.

Scotiabank raised the firm's price target on AT&T to $22.50 from $22 and keeps an Outperform rating on the shares. The companies continued execution of simplifying and streamlining operations continues to bear fruit, the analyst tells investors. While the wireless market remains competitive, reduced handset subsidies and positive pricing actions are leading to improved overall profitability metrics, the firm adds.