AT&T Addresses Lead Exposure Concerns, Eases Investor Worries and Sees Stock Rebound
Portfolio Pulse from Anusuya Lahiri
AT&T has addressed concerns about lead exposure, asserting that it has maintained a safe working environment for decades. The company clarified that less than 10% of its footprint is lead-sheathed, and a small minority will need to be removed. The cost of removal is not expected to exceed $20k per mile, with the total exposure estimated to be between $2 billion and $20 billion. The company's shares traded higher by 8.36% following the announcement. However, AT&T has been downgraded to Hold from Buy by Argus analyst Joseph Bonner due to potential environmental risks.
July 19, 2023 | 5:47 pm
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POSITIVE IMPACT
AT&T's clarification on lead exposure concerns and the limited impact on its operations has led to a rebound in its stock price. However, potential environmental risks have led to a downgrade in its rating by Argus.
AT&T's clarification on the extent of lead exposure and its impact on operations has eased investor concerns, leading to a rebound in its stock price. However, the potential environmental risks associated with lead-clad copper cables have led to a downgrade in its rating by Argus, which could impact investor sentiment in the future.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100