Telecoms sink as Barclays trims targets for AT&T, Verizon

Oct. 11, 2021 1:52 PM ETAT&T Inc. (T), VZLUMN, WBD, TMUSBy: Jason Aycock, SA News Editor315 Comments
  • Major telecoms are among the market's very worst performers today, with third-quarter earnings ahead and Barclays growing dimmer on near-term prospects for the old duopoly.
  • The bank trimmed its price targets for AT&T (T -2.5%) and Verizon (VZ -2.2%), noting a lack of catalysts for a while.
  • Analyst Kannan Venkateshwar rates both the stocks Equal Weight, and cut the target for AT&T to $30 from $34, saying technicals are "challenging" in the near term due to "drag" from the equity performance at Discovery (NASDAQ:DISCA), with which AT&T is merging media businesses.
  • Discovery shares are down 4% over the past month, and are a hefty 38% lower than six months ago.
  • Barclays' $30 AT&T target still implies 15% upside, accounting for today's decline.
  • As for Verizon, Venkateshwar trimmed the target to $55 from $56 after some tweaking of the model to account for expenses and closing the Yahoo deal. That target now implies 6% upside.
  • And that stock's performance will be "more sideways till some of the new revenue sources kick in," he says.
  • For its part, T-Mobile (NASDAQ:TMUS) is down 2.9% today. And Lumen Technologies (NYSE:LUMN) is 1.6% lower.
  • AT&T, Verizon and Discovery performance vs. the market in the past six months:T, VZ, DISCA vs. market over six months

Recommended For You

Comments (315)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.