AT&T Inc (NYSE:T) shares are trading higher Tuesday. The stock appears to be bouncing back after experiencing significant weakness on Monday on the heels of a downgrade from Citigroup related to the toxic lead-covered cables investigation.
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.
As reported by Benzinga, options traders are making bullish bets on AT&T ahead of its upcoming earnings report.
AT&T is set to report second-quarter financial results before the market opens on July 26. The company is expected to report earnings of 60 cents per share on quarterly revenue of $30 billion, according to estimates from Benzinga Pro.
See Also: What’s Going On With Verizon Shares
T Price Action: AT&T shares were up 2.92% at $13.93 at the time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
