on Monday drastically lowered its 2001 earnings estimate for
to 27 cents per share from 79 cents and forecast 2002 earnings per share at 33 cents. The shares are on the firm's U.S. Recommended for Purchase List.
Analyst Frank Governali made the cut because of "intensifying" competition and continued price erosion in the long-distance telephone market.
"Our new estimates incorporate in part all the information that has been conveyed to the Street over the past couple of months, as well as our assessment of T's competitive position in its relevant markets, " Governali wrote in the note.
AT&T has planned a breakup into four companies. Also, last year, its wireless phone unit
was the largest IPO in U.S. history at $9 billion.