Telecommunications company AT&T (NYSE:T) recently disclosed the leak of personal information of about 7.6 million present and 65.4 million former customers. The company said that the leaked data, which included social security numbers, passcodes, and contact details of the customers, surfaced on the dark web two weeks ago.
The dark web is an encrypted network of websites that are not indexed by traditional search engines and are frequently used for illegal activities.
The company revealed that after the data breach, it has reset the passcodes of affected customers in an effort to reduce the possibility of account hacking. However, the source of the security breach still remains unidentified.
It is worth highlighting that AT&T witnessed a major network failure in February, which resulted in a mobile phone service outage across the United States for several hours. The company attributed the outage to the incorrect implementation of a network expansion process. Additionally, the outage drew the attention of a federal investigation.
AT&T’s Risk Analysis
The recent AT&T data breach aligns with the company’s prior disclosures acknowledging heightened cybersecurity vulnerabilities.
The TipRanks’ Risk Analysis tool shows that the company’s Tech and Innovation risk exposure (cyber security is part of this risk category) is higher than the industry average. It accounts for 19% of its total risks, higher than the sector average of 15.5%.
Is AT&T a Buy, Sell, or Hold?
While the occasional outage and data leaks are concerning, the company has been making efforts to enhance its cybersecurity. Further, its commitment to improving the quality of the 5G network and expanding its fiber footprint bodes well for long-term growth.
On TipRanks, AT&T has a Moderate Buy consensus rating based on nine Buys and six Holds. The average price target on T stock of $20.89 indicates 18.7% upside potential from current levels. The stock has gained nearly 24% over the past six months.
