The shares of AT&T (T.US) are under massive downward pressure, which has temporarily lifted share prices to levels not seen in more than 20 years. The reason for the nearly 4.5 per cent decline is the downgraded recommendation on the company's shares by J.P. Morgan to 'neutral' from its previous 'overweight' rating. The target price has also been reduced (17$ versus the previous 22$).
As reported by JPM, the company is facing slightly more pressure in its mobility segment from rivals Verizon, T-Mobile US and in the wired consumer services segment.
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AT&T is currently trading at 6.2 times forward earnings, against a historical average of 8.6x.
Source: xStation 5
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