Wells Fargo Downgrades AT&T in Wake of Time Warner Buy

Wells Fargo Wednesday downgraded AT&T to market perform, citing questions about the Time Warner takeover. “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,” wrote analyst Jennifer Fritzsche. The cut from outperform is driven by “pressure on entertainment margins and enterprise stability not yet seen,” the many “new balls to juggle (and invest in)" and that “achieving delevering targets might push other priorities down,” she said.