AT&T sheds another 3% as Barclays hits sidelines, noting execution risk

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AT&T Inc. ($NYSE:T) shares shed another 3% on Tuesday, after Barclays analyst Jonathan Chaplin hit the sidelines on the stock, citing execution risk. AT&T has been under pressure in recent months as it has struggled to integrate its recent acquisition of Time Warner Inc. (TWX). The company has also been facing increased competition from rivals such as Verizon Communications Inc. (VZ) and T-Mobile US Inc. (TMUS).

Market Reaction

Venkateshwar cited execution risk and negative news coverage as his two main concerns for AT&T. The company has been under intense scrutiny from investors and the media lately, and its stock has taken a beating as a result. On Friday, AT&T stock opened at $18.7 and closed at $18.4. This is yet another decline for the stock, which has been struggling to regain its footing since last year.

VI Analysis

AT&T is a medium risk investment in terms of financial and business aspects, according to the VI Risk Rating. The company’s fundamentals reflect its long term potential. However, there are some potential risks in the business and financial areas that investors should be aware of.

Summary

Chaplin said that AT&T’s shares could remain under pressure in the near term, given the challenges it faces. The analyst added that he thinks AT&T’s shares could rebound as the company starts to show progress on its various initiatives. “We see potential for a re-rating of the shares as the company demonstrates progress on these fronts, but believe this is unlikely in the near-term,” Chaplin wrote.