AT&T Inc (NYSE:T) stock is down 7% to trade at $22.87 this morning. Telecom stocks across the board are selling off after Elon Musk's SpaceX (SPCX) scored a deal to acquire 800 megahertz spectrum portfolio from Grain Management. This puts the pressure on legacy wireless carriers and offers a serious disruption risk.
Scotiabank trimmed its price target on T to $26.50 from $27.50 in response. Peers T-Mobile US (TMUS) and Verizon Communications (VZ) are 9.5% and 7.5% lower, at last look.
AT&T stock has ceded its year-to-date breakeven level today. The shares are testing their 80-day moving average, but are now down 12% in the last 12 months.
More analyst revisions could be in store, considering 18 of the 29 brokerages in coverage maintain "buy" or better, with zero "sells" on the books. Plus, the consensus 12-month price target of $28.48 is a 14.5% premium from its current perch.
Meanwhile, T's Schaeffer's Volatility Scorecard (SVS) of 99 out of 100 indicates the stock has consistently exceeded options traders' volatility expectations over the past year.
