AT&T’s stock ended its steady march higher Tuesday, dropping nearly 3% after a respected Wall Street analyst downgraded the telecom and media giant’s shares and called its pay-TV un…
’s stock ended its steady march higher Tuesday, dropping nearly 3% after a respected Wall Street analyst downgraded the telecom and media giant’s shares and called its pay-TV unit a “cancer.”
Shares were on pace for one of their biggest single-day declines in 2019, falling $1.19 to $38.44. They had been gaining significant ground over the past couple of months, reaching a nearly two-year high of $39.61 as of Monday’s close of trading.deteriorated,” MoffettNathanson analyst wrote in his note to clients. In downgrading the company’s shares to “sell,” Moffett reaffirmed his 12-month price target of $30 a share.AT&T's John Stankey On Disney+ "Good Start," No Brain Drain At HBO & HBO Max "IQ Test" For Subscribers
Moffett, who has tracked the company and the pay-TV sector for decades, focused most of his criticism on the Entertainment Group, which includes DirecTV, U-verse and AT&T Now. “A year ago, AT&T promised to deliver ‘EBITDA stability’ for the Entertainment Group in 2019,” Moffett wrote. “They have delivered on that promise… but at a horrific cost.” In order to reverse EBITDA declines, the analyst continued, AT&T raised prices and curtailed promotional discounts on video service. The company also took a hard line in several carriage negotiations with CBS, Nexstar and others, resulting in blackouts.
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