AT&T shares fall the most in one month on Wednesday, Wells Fargo downgrades the stock to “Market Perform” due to margin pressure

August 23, 2018 9:43 am

Wells Fargo reportedly cut its rating on AT&T Inc (T) on Wednesday to “Market Perform” from “Outperform” previously due to pressure stemming from a dynamic entertainment environment. The Wall Street bank also revised down its price target on the stock to $35 from $40 previously.

AT&T shares closed lower for the second time in the past seven trading sessions in New York on Wednesday. It has also been the steepest daily loss since July 25th. The stock went down 2.16% ($0.72) to $32.68, after touching an intraday low at $32.66, or a price level not seen since August 16th ($32.53).

Shares of AT&T Inc have retreated 15.95% so far in 2018 compared with a 7.04% gain for the underlying index, S&P 500 (SPX).

In 2017, AT&T Inc’s stock fell 8.58%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

“While we agree in the longer-term story of AT&T’s strategic perspective, we believe the stock will be range-bound over the near-to-medium term,” Wells Fargo analysts, led by Jennifer Fritzsche, wrote in a note to clients, cited by MarketWatch.

Additionally, Wells Fargo’s Fritzsche noted that AT&T now had “many new balls to juggle (and invest in)”, referring to Time Warner’s assets.

The analyst also pointed out that in order to achieve delivering targets, AT&T might “push other priorities down the list.”

According to CNN Money, the 27 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $36.00, with a high estimate of $43.00 and a low estimate of $24.00. The median estimate represents a 10.16% upside compared to the closing price of $32.68 on August 22nd.

The same media also reported that 16 out of 31 surveyed investment analysts had rated AT&T Inc’s stock as “Hold”, while 10 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the AT&T stock are presented as follows:

R1 – $32.73
R2 – $32.78
R3 (Range Resistance – Sell) – $32.83
R4 (Long Breakout) – $32.98
R5 (Breakout Target 1) – $33.15
R6 (Breakout Target 2) – $33.22

S1 – $32.63
S2 – $32.58
S3 (Range Support – Buy) – $32.53
S4 (Short Breakout) – $32.38
S5 (Breakout Target 1) – $32.21
S6 (Breakout Target 2) – $32.14

By using the traditional method of calculation, the weekly levels of importance for AT&T Inc (T) are presented as follows:

Central Pivot Point – $32.81
R1 – $33.48
R2 – $33.94
R3 – $34.61
R4 – $35.29

S1 – $32.35
S2 – $31.68
S3 – $31.22
S4 – $30.77

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