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Salomon Smith Barney

is strutting its stuff this morning, downgrading shares of

AT&T

(T) - Get AT&T Inc. Report

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to an outperform from a buy, and lowering its 12 to 18 month price target on the company to $37 from $65. Salomon also lowered earnings-per-share estimates due to assumptions of lower revenue in the consumer and long-distance business segments. Salomon added that it dropped Telephone to an outperform rating rather than a neutral rating because the stock is off 53% from its 52-week high.

The Dow component, which has gotten its tailed kicked lately, is likely to come under pressure this morning due to the comments. "AT&T is in the process of figuring out how to restructure the company, and therefore the downside may be limited," the note said.