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.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app"We are concerned that incoming downward revisions for key growth businesses in wireless and fibre, the high interest rate environment and new uncertainty around lead-shielded cable will limit any meaningful rebound," - J.P. Morgan added.
AT&T is currently trading at 6.2 times forward earnings, against a historical average of 8.6x.
Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
