Oppenheimer Downgrades AT&T (T) on Fiber Expansion Risks
Oppenheimer downgraded AT&T (T) from Outperform to Perform, expressing caution about long-term broadband growth. The stock maintains a net profit margin of 18.6%.
Key Numbers
On June 3, Oppenheimer analyst Timothy Horan downgraded AT&T Inc. (NYSE:T) from Outperform to Perform, citing increased caution about the company's long-term broadband growth outlook.
Rating Change
- Previous Rating: Outperform
- New Rating: Perform
- Price Target: Not disclosed
Analyst Rationale
Horan believes AT&T's fiber optic network expansion faces risks that could slow future growth. Intense competition in the broadband sector and rising infrastructure costs add to uncertainty.
Context
The downgrade comes after AT&T reported a strong net profit margin of 18.6%, ranking it among the top 10 most profitable dividend stocks. However, the analyst appears focused on long-term challenges rather than current performance.
What to Make of It
The new rating suggests Oppenheimer sees AT&T as fairly valued at current levels, with no clear catalysts for near-term upside. Income-focused investors may still find the stock attractive, but should monitor fiber sector developments.
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