Telecom giant AT&T (NYSE:T) slipped in Monday morning trade at the time of writing after another top analyst downgraded the stock. AT&T shares are currently hovering near their 52-week low of $14.29.
Highly rated Citigroup analyst Michael Rollins downgraded AT&T to hold from buy and lowered its price target to $16 from previously $22. 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 said telecom giants including AT&T and Verizon Communications (vz) have large networks of lead-sheathed cables running throughout the US that could potentially endanger the health of workers and those in the area.
Rollins commented, “We are unable to concretely quantify the financial risks (if any, material ones) facing fixed-line telecoms based on the concerns expressed in the WSJ articles.” We remain concerned about further near-term downside risks and view uncertainty for now as an overhang.”
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 not seen in 29 years last week after a barrage of bad news. Last week, senior JP Morgan analyst Philip Cusick downgraded AT&T’s rating from “buy” to “hold,” citing potential liability for its lead-sheathed cables.
Analysts are cautiously bullish on AT&T stock Moderate buy consensus rating based on seven buys and seven holds.