AT&T Stock Downgraded on SpaceX Starlink Competition Fears

Oppenheimer analyst Timothy Horan downgraded AT&T (T) stock to Perform from Outperform on Wednesday and removed his previous price target of $32. The downgrade comes amid rising concerns that competition from satellite broadband providers, such as Amazon Leo and SpaceX's Starlink, could take market share from AT&T's internet business.

Rating Change

• Previous Rating: Outperform
• New Rating: Perform
• Previous Price Target: $32
• New Price Target: Removed

Analyst's Rationale

Horan believes that SpaceX's upcoming initial public offering next week will highlight the risks satellites pose to AT&T. He noted that satellite broadband services like Starlink and Amazon Leo could compete fiercely with AT&T in the internet market, potentially leading to market share loss.

Context

The downgrade comes as AT&T faces increasing competitive pressures in the telecom sector. The stock has been under pressure recently, declining 15% over the past year. Other analysts have not yet commented on the downgrade.

What to Make of It

The downgrade reflects growing concern about the impact of new technologies on AT&T's traditional business. Investors should monitor developments in the satellite broadband space and their potential impact on the company's future revenues.