AT&T downgraded to Underperform at MoffettNathanson after ‘dramatic bounce’

As previously reported, MoffettNathanson analyst Craig Moffett downgraded AT&T (T) to Underperform from Market Perform with an unchanged price target of $17. After "an unprecedented stretch of underperformance" for Verizon (VZ), he believes his prior Underperform recommendation "has likely run its course," Moffett tells investors. Meanwhile, after "a dramatic bounce for AT&T," he thinks relative valuations are "now inverted" and that AT&T "once again looks overvalued," said the analyst, who simultaneously upgraded Verizon to Market Perform. Though he adds that T-Mobile (TMUS) "once again looks to be (by far) the industry’s most attractive investment," Moffett cautions that its upside potential is becoming more limited as sentiment has "steadily brightened" and he lowered his price target on those shares to $174 from $177.