AT&T Inc (NYSE:T) shares are trading lower. The stock was downgraded by Citigroup Monday morning.
What Happened: Citigroup analyst Michael Rollins downgraded AT&T from a Buy rating to a Neutral rating and lowered the price target from $22 to $16, citing potential risks related to lead sheathed cables.
Last Week, the Wall Street Journal reported that several telecom giants have networks of underground cables that are covered in toxic lead. As the lead degrades, it poses risk to the environment.
The report indicates that there are more than 2,000 cables that haven’t been addressed by the telecom companies.
AT&T shares are down more than 8% over the last week and nearly 25% since the start of the year.
The company is set to report second-quarter financial results before the market opens on July 26. AT&T is expected to report earnings of 60 cents per share on quarterly revenue of $30 billion, according to estimates from Benzinga Pro.
See Also: Barron’s Weekend Stock Picks: Children’s Place, AT&T And A Boost From Prime Day
T Price Action: AT&T shares were down 3.97% at $13.92 at the time of writing, according to Benzinga Pro.
Photo: Lucent_Designs from Pixabay.
