Amdocs (DOX) is positioned to win in the "intelligent telco era" given its track record of successful transformations and deep relationships with major industry players, Oppenheimer said.

The company recently held a demonstration of its agentic operating system, or aOS, for telecom operators. Oppenheimer said aOS allows telcos to embed generative artificial intelligence into existing BSS/OSS systems and integrate them with cloud infrastructure.

"The carriers will have to adopt GenAI quickly or will be at a major cost and quality disadvantage," the brokerage noted in a Monday note.

According to Oppenheimer, aOS is still in its "early days" but already has several partners and early access customers reporting more than 20% productivity improvements and faster time-to-market, among others.

Oppenheimer has an outperform rating and $105 price target on Amdocs.

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