AT&T Faces Competitive Pressure from SpaceX's Starlink
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Source: CNBC
- Downgrade Initiated: Wells Fargo initiated coverage of AT&T with an underweight rating and set a price target of $18, indicating nearly a 15% downside from Tuesday's close, reflecting a pessimistic outlook on the company's future performance.
- Intensified Market Competition: Analyst Steven Cahall noted that Starlink's near-term growth potential in broadband and long-term disruptive capability in wireless will put AT&T under significant competitive pressure, especially outside its fiber footprint.
- Stock Price Decline: AT&T's shares have already fallen 15% year-to-date in 2026 due to various headwinds, including high infrastructure costs and the commoditization of telecommunications services, raising investor concerns about its growth prospects.
- Limited Partnership Opportunities: The likelihood of AT&T forming a mobile virtual network operator partnership with Starlink is low, meaning the company must excel in fiber and convergence services to generate upside for its shares.
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Analyst Views on T
Wall Street analysts forecast T stock price to rise
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 20.580
Low
20.00
Averages
28.27
High
33.00
Current: 20.580
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a provider of telecommunications and technology services. The Company's segments include Advanced Connectivity, Legacy and Latin America. The Advanced Connectivity segment provides domestic fifth generation (5G) and fiber-based wireless, internet and other advanced connectivity services to consumer and business customers. The Legacy segment provides domestic legacy voice and data services to consumer and business customers over our copper-based network. The Latin America segment provides wireless service and equipment in Mexico. Its plans and services include AT&T Fiber, AT&T Points Plus Card, AT&T Wireless and AT&T Fiber. Its phone plans include Elite 2.0, Premium 2.0, Extra 2.0, and Value 2.0. Its home internet solutions include AT&T Fiber and AT&T Internet Air. It offers phones, tablets, and smartwatches. The Company also offers accessories such as cases, chargers, screen protectors, and headphones.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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