Wireline stocks could trade lower on toxic lead risk, says Citi

The Wall Street Journal over the weekend repotted, citing its own investigation, that AT&T (T), Verizon (VZ), and other telecom companies still have network cables covered in toxic lead across the U.S., under water, in the soil and on overhead poles, Citi analyst Michael Rollins the analyst tells investors in a research note. The firm believes the stocks with wireline exposure could trade lower near-term on the uncertainty and risk associated with the concerns raised by the article. Citi does not believe there is a simple method to assess possible risk given the duration over which cabling in the industry has been deployed, maintained and/or replaced.