AT&T $T Drops After Report on Lead on Cables

New Street Research said AT&T likely has the highest exposure overall to lead-cased copper cables, followed by Verizon and Lumen Technologies. It estimated that removing the lead could cost the industry nearly $60 billion, including potentially $34 billion for AT&T.
The Journal reported that more than 2,000 cables covered in toxic lead run across the U.S., and that the lead-covered cables can be found on poles, in soil and water, leaching lead and posing potential health risks to the workers and communities around them.
AT&T declined to comment. A spokesperson from USTelecom, responding on behalf of the telecom industry, said that many factors go into deciding if legacy lead-sheathed cables should be removed. The industry started phasing out lead-sheathed cables 73 years ago.
Citigroup analyst Michael Rollins cut his rating on AT&T stock to Neutral from Buy. MoffettNathanson’s Craig Moffett kept his Neutral equivalent rating but said investors could steer clear of the stock for a while. JPMorgan also cut its rating to Neutral from Overweight.
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