KeyBanc Downgrades AT&T (T) to Underweight

On Sunday, Analysts at KeyBanc downgraded shares of AT&T (T) to Underweight from Sector Weight, with a Price Target of $25. The $25 price target represents downside from the stock’s current price and is based on 6.2x analysts 2021 adjusted EBITDA estimates. The analysts see a tough road ahead for the company, as the struggles continue to grow for T and the business growth has slowed. Analysts revenue and adj. EBITDA estimates are 1.5% and 5.9% lower than consensus in 3Q, respectively, due to a variety of factors, most notably in Warner Media where analysts expect the combination of return to sports and added expense associated with HBO Max to impact profitability.

The analysts point to a variety of factors expected to impact profitability, including Mobility revenue, Entertainment revenue, and the aforementioned WarnerMedia operation. New competition from cable company MVNOs and T-Mobile are expected to hurt T’s mobility

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