Wells Fargo has initiated coverage of AT&T with an underweight rating, setting a price target of $18, which indicates a potential decline of nearly 15% from the stock's recent closing price. Analyst Steven Cahall highlighted that Starlink is expected to gain market share in broadband services, posing a threat to AT&T's fixed wireless access and wireless segments.
The report notes that AT&T's market share is vulnerable outside its fiber footprint, and the company is less likely to form a partnership with Starlink, which could hinder its competitive position. Year-to-date, AT&T shares have already decreased by 15% due to high infrastructure costs and the increasing commoditization of telecommunications services.
Despite this negative outlook from Wells Fargo, the stock showed little movement in premarket trading, contrasting with the broader consensus among analysts, where 14 out of 29 maintain a hold rating and 15 recommend buying the stock. AT&T did not provide a comment on the report