AT&T is likely to lose ground to SpaceX's Starlink, putting even more pressure on shares, according to Wells Fargo. The bank initiated coverage of the telecommunications giant with an underweight rating. It also put an $18 price target on shares, implying nearly 15% downside from Tuesday's close:
"We see Starlink as a near-term gainer in [broadband] vs [fixed wireless access], & longer-term disruptor to wireless," analyst Steven Cahall said in a note to clients:
"Outside of T's fiber footprint we think competition will be fierce, and with weaker market share footholds excl. wireline areas we think T's wireless net adds are the most at-risk," he added:
Shares of AT&T have already fallen 15% year to date due to a variety of headwinds, including high infrastructure costs and the commoditization of telecommunications services:
Wells Fargo's call goes against consensus on Wall Street. AT&T did not respond to CNBC's request for comment:
