Telecommunication companies AT&T (NYSE:T) and Verizon (NYSE:VZ) traded lower on Friday as the window closes for shareholders to get on for the companies’ next dividend payout. The price slips also come amid a wider decline in Telecom stocks. Indeed, telecom companies have faced mounting pressures from regulators. In particular, the Department of Commerce’s National Telecommunications and Information Administration (NTIA) has urged regulators to see that telecom companies provide indiscriminate network coverage.
In a Friday filing, the NTIA asked the Federal Communications Commission to adopt strong rules against digital discrimination. Furthermore, the agency urged the FCC to adopt effective, clear, and practical rules to bridge the digital divide across America.
“Strong rules are needed to remedy unequal access to Internet service, no matter what the cause may be,” said NTIA official Alan Davidson. “Rules that combat digital discrimination will bring lasting relief to vulnerable communities that historically have been left behind online.”
However, AT&T and Verizon have spoken up against the NTIA moves, calling it a “radical proposal” to control the telecom industry. The companies argue such moves by regulators could impact investment decision-making. Instead, Verizon asked the FCC to encourage policies that would boost private investments.
What is the Price Target for AT&T?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AT&T stock based on six Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $20.40 per share implies 42.71% upside potential.
