Market Overview

UPDATE: HSBC Downgrades AT&T

Related T
Morgan Stanley Has Positive Long-Term View On AT&T
#PreMarket Primer: Thursday, July 24: Facebook Proves Its Worth
Tech Rewind: Amazon Slides, Facebook Goes Mobile (Fox Business)

Shares of AT&T (NYSE: T) have moved higher 0.61 percent to $34.67 in Tuesday's session after HSBC downgraded the stock from Overweight to Neutral and lowered the price target from $39 to $35.

Analyst Richard Dineen believes the industry's margins may contract from 6.8 percent growth in 2013 to 5.6 percent growth in 2014, due to increased pricing competition.

Increased price competition will hurt AT&T more than Verizon, as Verizon is considered a “quality leader” by consumers, the analyst said.

The potential Sprint and T-Mobile deal is facing “considerable antitrust hurdles” due to the current status of industry competition, Dineen said.

The analyst reiterated his Overweight rating on Verizon and Neutral rating on Sprint.

Shares of Verizon are down 0.27 percent to $46.90 at last check.

Posted-In: HSBC Richard DineenAnalyst Color Downgrades Price Target Analyst Ratings

 

Most Popular

Related Articles (T)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters