AT&T Stocks To Fall To The Lowest Since 1993
AT&T Stocks To Fall To The Lowest at 7% and had hit their lowest in thirty years on Monday after analysts demoted the share following a news report that accused the telecommunication giant of burying harmful lead cables all across the United States.
According to a Wall Street Journal report on 9th July called, AT&T and Verizon, among multiple other telecommunication giants, left an extended network of harmful lead cables, where a large number of them have potentially contaminated the soil and water of the neighboring areas.
Analysts at JP Morgan and Citigroup have both lowered their recommendations over AT&T stocks recently. So far this year, the stock has lost almost a quarter of its total value, which is almost a 12% drop since the Wall Street Journal report. Since March 1993, the stocks have hit the lowest of $13.68 in the session on Monday.
AT&T hence is to face unquantifiable risks that might create a “long term overhang” for the share as the company possibly has a mentionable exposure to the harmful lead cables, where its networks reach out to almost 40% of the homes in the U.S as mentioned by Michael Rollins in an investor note.
Rollins has cut his ratings for AT&T shares from “buy” to “neutral” and knifed his price target to $22 from $16.
However, AT&T has not immediately responded to Reuters’ request for comment. U.S Telecom, a lobby group that represents Verizon, AT&T, and other telecom agencies, added that there had been considerations that were made to conclude if the cables were removed or are still under the ground. However, there is no living evidence that shows
“legacy lead-sheathed telecom cables”
are, in fact, the
“leading cause of lead exposure or the cause of a public health issue.”
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