The U.S. telecommunications provider’s share price fell to a new low of below $15.85 on Friday, hitting levels last seen in September 2008.
The reason for the downgrade is the company’s sharp decline in sales and lower dividend payouts.
For the third quarter of this year, $29.85 billion in revenue and about $0.61 in earnings per share are expected, which would represent a slight increase in revenue but also a slight decrease in earnings from the second quarter. Many well-known research analysts have continued to lower their price targets for the share in recent months, but have a more positive outlook again for the first two quarters of the coming year. Zack Research, for example, also forecasts constant Q2 earnings per share of $0.61 in a research note published a few days ago.
However, the share chart is still currently giving rather bearish signals. A key support level at $17.00, which withstood double testing during the December 2021 correction, was recently breached. If the current downtrend continues, further price declines to the next relevant support at $14.85 are likely. Otherwise, the price would first have to overcome $17.00, which could now serve as resistance, in order to reach prices of $18.00 and more again.