Guggenheim analyst Mike McCormack downgraded CenturyLink (CTL) to Sell from Neutral with an unchanged price target of $10. The stock closed Tuesday up 2c to $13.67. The shares are up 41% since late May and industry data points are not encouraging, McCormack tells investors in a research note. The analyst says both comments and results from AT&T (T) and Verizon Communications (VZ) reaffirm his negative stance on the macro environment and developing trends in Wireline. Wireline results at AT&T and Verizon showed significant weakness, McCormack points out. Margin pressures for both in Wireline cause "significant concern for pure-play" CenturyLink, adds the analyst. Further, McCormack continues to believe that CenturyLink management is not likely wedded to the dividend. He has a hard time believing that the over $1B annual payment wouldn't be more appropriately applied to the company's nearly $35B of debt.

Scotiabank raised the firm's price target on AT&T to $22.50 from $22 and keeps an Outperform rating on the shares. The companies continued execution of simplifying and streamlining operations continues to bear fruit, the analyst tells investors. While the wireless market remains competitive, reduced handset subsidies and positive pricing actions are leading to improved overall profitability metrics, the firm adds.

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FY25 EPS consensus $2.16.

Ribbon Communications (RRBN) announced plans for a major network modernization program with Verizon (VZ) to retire legacy TDM switching platforms and replace their function with modern cloud-based technologies. Verizon is leveraging Ribbon's portfolio of Voice Products including the vC20 Call Controller, G5 Line Access Gateway, G6 Universal Media Gateway, virtual and Cloud-native Session Border Controllers, and other products which allows for the consolidation and replacement of equipment with energy efficient, software-centric platforms while maintaining full feature functionality.

Reports Q1 revenue $30B, consensus $28.65B. Reports Q1 349,000 postpaid phone net adds. "Our results this quarter reflect continued strong growth in our Mobility and Consumer Wireline connectivity businesses, which represent about 80% of our total revenues," said John Stankey, AT&T CEO. "Customers are choosing AT&T and staying with us. We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in Mobility and Consumer Wireline. We're also delivering on our commitment to grow and improve the quality and cadence of free cash flow, which increased by more than $2 billion year over year. This consistent, solid performance driven by our investment-led strategy gives us confidence to re-affirm our full-year consolidated financial guidance."