AT&T Inc. shares /zigman2/quotes/203165245/composite T +0.60% are down more than 3% in premarket trading Monday after Cowen & Co. analyst Colby Synesael downgraded the stock to market perform from outperform and lowered his price target to $37 from $43, citing heightened risks from COVID-19, the disease brought on by the novel coronavirus. "We expect fundamentals particularly within WarnerMedia to be pressured including HBO Max," Synesael wrote. "Valuation is admittedly cheap and our call is admittedly reactive, but in our view AT&T is unlikely to beat the market either on a continued selloff or eventual recovery." He said that the stock's recent selloff already seems to bake in the likelihood that AT&T won't be able to meet its three-year targets, but he expects fundamentals at the company to worsen. He cut his estimates for the WarnerMedia unit "assuming heavy social distancing measures remain in place until June and that the economy is in a recession for the remainder of 2020." AT&T shares have lost 26% over the past month as the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.45% has dropped 31%.