NEW YORK (TheStreet) -- AT&T (T) - Get Report  stock is down 1.3% to $42.54 this afternoon as Citi downgrades the stock to a "neutral" rating from "buy" but raises its price target on the stock to $46 from $42.

"Our lowered rating contemplates the investor demand for dividend yield, which has benefited the shares in recent period and put valuation multiples near historic highs," Citi said in an analyst note this morning.

If interest rates rebound, the firm has concerns that the crowded dividend trade will reverse.

Citi added that communications stocks like AT&T have become popular recently due to their defensive characteristics, despite the fact that "fundamental performance" has been "arguably mixed for the industry," especially for AT&T and rival Verizon (VZ).

AT&T is a Dallas-based telecommunications company.

(AT&T is a holding in TheStreet's Dividend Stock Advisor portfolio. Learn more here.)

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of A+.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, expanding profit margins and solid stock price performance.

TheStreet Ratings feels its strengths outweigh the fact that the company has had generally high debt management risk by most measures that TheStreet Ratings evaluated.

You can view the full analysis from the report here: T

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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