Bernstein downgrades AT&T amid Starlink competition, target lowered to $24
AT&T just got bumped down by Bernstein, moving from "outperform" to "market perform," mainly because SpaceX's Starlink is stepping up as serious competition in the wireless game.
Bernstein also dropped AT&T's price target to $24, pointing out that SpaceX could really change things up.
All this comes while AT&T's stock has already slipped over 9% this year, even though most analysts still say it has a buy or strong buy rating.
SpaceX Starship launches Starlink V3 satellites
SpaceX isn't slowing down: its latest Starship launch put new Starlink V3 satellites into orbit, boosting network capacity and making traditional telecom companies sweat.
As analyst Laurent Yoon puts it, "We are downgrading AT & T...to reflect the ongoing - and justifiable - pressure from SpaceX's foray into both broadband and wireless, further exacerbating recent pricing moves by incumbents and expected Q4 seasonality,"
Investors seem excited too: SpaceX stock has jumped 17% in the past three months, showing just how much faith people have in its potential to shake up the industry.