BMO is bullish on the new S&P 500 Communications sector, saying valuations are "attractive" and growth potential is there.

It's rating the new sector Overweight.

The sector is set to unite telecom veterans from wireless (T, VZ, TMUS, S) and cable (CMCSA, CHTR) with media stocks including Disney (NYSE:DIS) and Fox (FOX, FOXA) as well as Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX) and Alphabet (GOOG, GOOGL).

BMO's stance runs counter to the take earlier this month from RBC, which went Underweight on the new sector saying it has "more negatives than positives" including a weak earnings profile and regulatory risk.