Telecommunication giant, AT&T (NYSE: T) slipped in morning trading at the time of writing on Monday after another top-rated analyst downgraded the stock. Currently, AT&T shares are hovering near its 52-week low of $14.29.
Top-rated Citigroup analyst Michael Rollins downgraded AT&T to a Hold from a Buy and lowered the price target to $16 from $22 earlier. The analyst’s current price target implies an upside potential of 10.34% at current levels.
Rollins remained concerned about a Wall Street Journal report earlier this month that stated that telecom giants like AT&T and Verizon Communications (VZ) have large networks of lead-sheathed cables running across the U.S. which could potentially risk the health of workers and people around it.
Rollins commented, “We are unable to specifically quantify financial risks (if anything material) for wireline Telcos from the concerns raised by WSJ articles. We remain concerned for further near-term downside risk and view the uncertainty as an overhang for the time being.”
According to Barron’s report, AT&T told Citi that “lead within their network is a small percentage of the total infrastructure.”
The stock hit new lows last week, not seen in the past 29 years after a barrage of bad news. Last week, top-rated analyst from JP Morgan Philip Cusick, slashed AT&T’s rating to a Hold from a Buy citing potential liability from its lead-sheathed cables.
Analysts are cautiously optimistic about AT&T stock with a Moderate Buy consensus rating based on seven Buys and seven Holds.
