Deutsche Bank downgraded AT&T (T) to sell from hold.
Viktor Shvets says the long-distance carrier's current share price doesn't reflect deteriorating business fundamentals. Although AT&T has joined regional bells in the latest rally on Wall Street, there's considerable differences between AT&T and the rest of telecoms.
Shvets thinks regional bells can rebuild their business models, and therefore, one could argue that their long-term growth rates -- while low -- might not end up to be strongly negative. Unfortunately, this case cannot be made for AT&T, and so the company's dividends and cash-flow multiples shouldn't provide much support to the stock's valuation.