AT&T Stock Forecast: Shares Trade Near $23 After Analyst Downgrade

Leading analysts are adjusting their assessments of the issuer’s shares due to increased competition from satellite communications companies. AT&T Inc. remains committed to terrestrial service delivery methods and needs to optimize its offerings. Thus, on June 7, amid weakening demand, the number of high-speed plans will be reduced to four, and bundled discounts will be introduced for customers combining wireless and internet services. Experts note that the company’s long-term plan to increase the number of broadband subscribers may prove difficult to implement. Taking these factors into account, analysts downgraded the corporation’s rating from “Outperform” to “Market Perform” and lowered the target price from 30.00 to 25.00.

The second-quarter financial report will be published in mid-July. Revenue is expected to increase from 31.50 billion dollars to 31.79 billion dollars, above 30.85 billion dollars recorded in the same period last year, while earnings per share may rise from 0.570 dollars to 0.587 dollars, compared with 0.540 dollars a year earlier. The date of the next dividend payment has not yet been approved, while the previous transaction took place on May 1 in the amount of 0.2775 dollars per share, equivalent to a quarterly yield of 4.14%, above the sector average of 4.09%.

Support and resistance levels

On the daily chart, the trading instrument is moving near the support line of the descending channel with dynamic boundaries at 25.00–23.00.

Technical indicators are strengthening the sell signal received in mid-April: the EMA fluctuation range of the Alligator indicator is expanding downward, while the AO histogram is forming corrective bars below the transition level.

Resistance levels: 23.50, 26.00.

Support levels: 21.90, 20.00.

AT&T Inc. trading scenarios and forecast

Short positions may be opened after the price declines and consolidates below 21.90, with a target at 20.00. Stop-loss — around 23.00. Expected timeframe: 7 days or more.

Long positions may be opened after the price rises and consolidates above 23.50, with a target at 26.00. Stop-loss — above the current level at 22.50.