What's Going On With AT&T Stock Today? Analyst Cites Lead-Sheathed Cables As 'Uncertain Risks'

AT&T Inc T shares are trading lower Tuesday after Jim Cramer discouraged investors from investing in the telecommunications giant.

The Dallas-based company is "as poorly managed as any company I've ever seen in my lifetime," Cramer said on CNBC's "Mad Money Lightning Round."

Meanwhile, Citigroup analyst Michael Rollins maintained AT&T with a Neutral and raised the price target from $16 to $17.

See Also: Telecom Giants AT&T, Verizon Face Investor Skepticism Over Lead-Cable Issue And Debt Load

The re-rating is mainly on the "uncertain risks" from the industry's legacy use of lead-sheathed cabling.

According to the analyst:

• Solid second-quarter (Q2) results will align with the consensus on revenue and EPS and slightly ahead on EBITDA growth
• The revised Postpaid Phone net add estimate of 315k reflects prior management commentary and compares to the VA consensus of 384k.
• A revised fiber broadband net adds of 250k (also reflecting prior management commentary) are slightly below the VA consensus of 284k. 
• Using T's definition, the FCF estimate remains at a similar level of $16 billion. 

Rollins' price target reflects a further updated scenario estimate for possible lead-based cabling remediation of ~$8.5 billion. 

Price Actions: T shares traded lower by 1.17% at $14.78 on the last check Tuesday. 

Now Read: AT&T Addresses Lead Exposure Concerns

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