Bernstein has downgraded AT&T from outperform to market perform, reducing its price target from $25 to $24, indicating a potential upside of about 7% from the stock's recent close. Analyst Laurent Yoon cited the increasing pressure from SpaceX's entry into broadband and wireless services as a key factor in this decision.
SpaceX's recent launch of Starlink V3 satellites marks a significant capacity expansion for its wireless service, which could disrupt traditional telecom pricing structures. Bernstein notes that the competition from satellite-based companies is likely to erode the pricing power of established telecom firms like AT&T.
While 15 out of 27 analysts still rate AT&T as a buy or strong buy, the stock has underperformed, falling over 9% in 2026, contrasting with SpaceX's 17% increase since its IPO. This situation suggests a potential shift in investor sentiment as the market evaluates the long-term impact of Starlink on the telecom landscape