Deutsche Bank Downgrades AT&T (T) to Hold

Deutsche Bank downgraded AT&T (NYSE: T) from Buy to Hold with a price target of $43.00 (from $44.00). Analyst Matthew Niknam pointed out tougher fundamentals and more balanced risk-reward.

"We downgrade AT&T shares to Hold (from Buy), and trim our estimates to reflect weaker margins/slower EPS growth. While we continue to believe AT&T's scale and low-cost profile remains a key strategic differentiator vs. peers, we nonetheless note this is our third downward estimate revision since October (DBe: +3.6% EPS growth in '17, vs. +7.0% in early Oct. '16); our 2017/2018 forecasts (revenue/EBITDA/EPS) are now all 1% below the street. With limited upside to our price target (now $43, from $44) and a number of fundamental headwinds (Wireless/linear video competition) likely to pick up in 2017, we see more balanced risk/reward at current levels," said Niknam.

For an analyst ratings summary and ratings history on AT&T click here. For more ratings news on AT&T click here.

Shares of AT&T closed at $40.81 yesterday.

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