Savvy Trades and Investments

[researcher59]

T -.66 to 13.84, getting hammered after analyst downgrades - is there a price you'd get back in ? Or is the potential lead cable sheathing liability too concerning ?

Here's the WSJ article that exposed the cable concerns -

https://www.wsj.com/articles/lead-cables-telecoms-att-toxic-5b34408b?st=m90kcc19y1ywnb6&reflink=desktopwebshare_permalink

fly -

AT&T downgraded to Neutral from Buy at Citi

Citi analyst Michael Rollins downgraded AT&T to Neutral from Buy with a price target of $16, down from $22. The analyst believes the telecommunication industry's historical use of lead sheathed cabling is likely to remain an overhang for the stocks and valuations for at least a few months and potentially longer until the market can better measure the financial risk. As a result, Citi downgraded three telecommunications operators. Copper network deployed with possible lead sheathing could be a significant percentage of the legacy network deployed nationally with varying exposures for each company, the analyst tells investors in a research note. The firm says it is unable to specifically quantify financial risks for wireline telcos from the concerns raised by the Wall Street Journal articles. Citi believes most of the wireline telcos will be subject to a valuation discount based on its current scenario analysis. It remains concerned for further near-term downside risk and views the uncertainty as an overhang for the time being.

AT&T downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Philip Cusick downgraded AT&T to Neutral from Overweight with a price target of $17, down from $22. Based on recent commentary from management lowering estimates for wireless and broadband, the analyst believes AT&T is facing "marginally more pressure" in Mobility and Consumer Wireline as well as ongoing pressures in Business Wireline. While AT&T shares are trading at a record-low valuation, repeated downward revisions for its key wireless and fiber growth businesses, the high interest rate environment, and new uncertainty regarding lead sheathed cables "will limit any substantial rebound," the analyst tells investors in a research note. In addition, the firm says potential liability from the copper lead sheathing situation is unquantifiable and a long-term overhang for the stock.